The Treasury bonds are actually 29-year and 11-month to maturity. Of the $13 billion accepted, some $32.09 billion was tendered. The 2.875% coupon went off at a 3.355% yield with an at-issue price of $90.978135. Its bid-to-cover ratio came to 2.47. This was the highest long bond auction yield since March of 2012 and the on-the-run 30-year Treasury yield is now 3.325%.
Primary dealers tendered for $20.6 billion and had only $6,662 billion in accepted bids for their own accounts. Direct bidders, the non-Primary dealer submitters bidding for their own house accounts were about $1.1 billion.
Indirect bidders, the barometer of foreign bank demand for Treasuries, was where al of the action was. While almost $8.6 billion was tenders (about 27% of the tendered amount), the amount accepted was $5.229 billion and that comes to just over 40% of the entire auction.
The 10-year Treasury yield has now dropped down to 2.17% as well for a drop of 6 basis points from yesterday. The S&P 500 Index is up 11 points and the DJIA is up about 85 points.
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