Home Auction 30Y Treasury Auction Prices At Record Low Yield Of 2.170%

30Y Treasury Auction Prices At Record Low Yield Of 2.170%


While the week’s final coupon auction was largely in line with recent Treasury sales, it was remarkable for one specific reason: it just closed at the lowest high yield on record, stopping out at 2.170%, tailing the WI 2.169% by 0.1bps but pricing not only below the Sept yield of 2.270%, but also below the previous record low of 2.172% from July 2016.

The bid to cover was average, rising modestly from 2.221 to 2.245, above the recent average of 2.226%, but clearly on the downslope of the BTC trend. The internals were also mediocre, with the Indirects taking down 58.5% of the auction, below last month’s 60.3% and below the recent average of 58.9%, and with Directs taking down 18.5%, above the six auction average of 13.9%, it meant Dealers were left holding 22.9%, slightly below the recent average of 27.3%

Overall, a forgettable if also historic auction at the same time, with the question now how long until we get a new all time record low yield print.

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