Treasury's record sized $18 B 30-year bond auction was weaker than expected
Treasury's record sized $18 B 30-year bond auction was weaker than expected as it richened just ahead of the deadline. The offering stopped at 3.090%, tailing out from the 3.087% at the bid deadline. It compares to the 2.958% for the $14 B July reopening and the 3.130% for the $17 B May new issue. Bids totaled $40.9 B for a 2.27 cover, below the 2.34 from last month and 2.38 in May, as well as the 2.39 average. It's the lowest since August 2017. Indirect bidders took 62.2%, close to last month's 61.9% last month, as well as the 62.7% in May, and the 62.5% average. Direct bidders accepted 8.0% from July's 10.3%, with primary dealers awarded 29.7% from 27.8% previously. This completes the record $78 B August refunding, and the bond market might find some solace in that.