Treasury 30-year bond preview:
Treasury 30-year bond preview: this sale could split the difference between a great 3-year and a dog of a 10-year sale. The wi is 1 bp richer at 2.820%, having backed up slightly from 2.795% earlier. However, a stop here would be the lowest since October's 2.470%. While that may be problematic, the benign view on inflation, especially after today's PPI misses, could limit the pricing damage. Nevertheless, there remains a hunger for yield and the near 60 bp pick up to the 10-year may be attractive since it's at the wider end of the recent range going back to June. Also, the 167 basis point pick up to the German 30-year should be a plus. The $12 B July reopening stopped at 2.936% and garnered a 2.31 cover (2.27 average) and a 61.7% indirect bid (62.2% average). Direct bidders took 6.4%, with primary dealers awarded 31.9%. The last new issue from May was awarded at 3.050% and saw only a 2.19 cover and a 59.1% indirect bid.