Treasury 30-year auction preview:
Treasury 30-year auction preview: concession building has boosted the wi nearly 2 bps to 2.790%. And it's considerably cheaper than the 2.657% year-to-date low attained by the benchmark late last week, an award rate here would still be the richest since October, and that may ward off buyers. That's been the case for the 3- and 10-year trances so far. The issue isn't too attractive on the curve. And though there wasn't much market reaction to the PPI data earlier, the advent of the CPI, and prospects for gains this month and over the next few, could also keep some sidelined. The offering could also suffer from a dwindling short base. On the other hand, there is a natural demand base, and the relatively higher yield and near 160 bps premium to the German 30-year yield, as well as the 2.75% coupon could be relatively attractive, especially to foreign investors. The $15 B August bond sale saw above average demand. It was awarded at 2.818% and garnered a decent 2.32 cover (2.28 average) and a 66.8% indirect bid (62.6% average). Direct bidders took 5.4%, while primary dealers were awarded 27.8%.