Treasury's $16 B 30-year bond reopening was very, very well received
Treasury's $16 B 30-year bond reopening was very, very well received. It's even better than expected, thanks largely to the big concession. The auction priced very well. The hefty cheapening in rates amid the surge in risk appetite, the lack of inflation pressures, and the FOMC's dovish lean Wednesday, all made the sale very attractive. The offering stopped at 2.307%, through the 2.328% at the bid deadline. And the yield is a little richer than the 2.430% award rate for the $19 B November refunding. There were $39.3 B in bids for a 2.46 cover, stronger than the 2.23 from last month, and the 2.24 average. Though there was some support from the $3 B cut in auction size versus the $19 B for the November refunding, this is nevertheless the strongest since January 2018. Indirect bidders accepted 63.4%, also above last month's 58.8% and the 59.0% average. It's the highest since December 2018. Direct bidders were awarded a solid 21.1%, even better than the 20.5% previously and the 15.1% average. It's the best since December 2014. Primary dealers took only 15.5%, below the prior 20.7% and the 25.9% average. It is a record low. This is one of the strongest auctions in memory.