Treasury Action: yields cooled from highs
Treasury Action: yields cooled from highs after a decent takedown on the final $13 B 30-year reopening leg of the coupon auction series this week from the Treasury. Crowding from corporate multi-tranchers and rumors of China boycott of the auctions helped create a helpful concession in front of the sale, which may now be followed by some relief buying if stocks pause at highs. The current 30-year yield topped 3.05% earlier before easing to 3.03% compared to 2.99% in Asia and the 3.044% award rate on the reopened bonds. Yields are now 3.3-4.3 bps higher along the curve, led by the belly and with the bond outperforming after the auction. The 5s-30s spread is accordingly a bp flatter near +37 bp.