US 30-Year Bonds: 4.720%; 61.57% At High; Bid-To-Cover 2.36 (can any one explain what is "the auction tailed" ? to me it sounds more like FAILED!!)
WASHINGTON (Dow Jones)--The U.S. Treasury awarded $16.00 billion in 30-year bonds at Thursday's auction at a high rate of 4.720%.
Treasury's 30-yr bond came in at a yield of 4.720%, above the 4.681% just before the 1 p.m. auction, meaning the auction tailed. The bid-to-cover ratio is 2.36, below the 2.68 in Jan and the 2.45 in Dec. The average was 2.44 from the past four auctions. Indirects 29%, directs 24% (KNN/DLB)
The Treasury received bids totaling $37.76 billion and accepted $16.00 billion, including $19.91 million of noncompetitive tenders.
Meanwhile, the Federal Reserve purchased $1.80 billion in 30-year bonds for its account. The Fed held $9.10 billion in maturing bonds at the time the auction was announced.
The bid-to-cover ratio, an indication of demand, was 2.36, Treasury said. Tenders submitted at the high yield were allotted 61.57%. The dollar price was 98.483611 and the coupon rate was set at 4.625%.
The median rate was 4.640%; that is, 50% of the amount of accepted competitive bids were tendered at or below that rate. Of the competitive bids accepted, 5% were tendered at or below the rate of 4.536%.
The issue is dated Feb. 15, 2010, and matures on Feb. 15, 2040.
The CUSIP number on the 30-year bonds is 912810QE1. |
