30 year bond auction

By Peter Boockvar - September 10th, 2009, 1:16PM

The 30 year bond auction was solid as the yield at 4.238% was below expectations of 4.27-4.29%. Also, the bid to cover at 2.92 is the highest since the 30 year was reintroduced in Feb ’06 and well above the average over the past year of 2.32. Indirect bidders totaled 46.5%, slightly below the previous two auctions but overall the auction was great. This is great news in satisfying the needs of US government borrowing but still begs the question of why we are seeing such good demand at these yields in light of the expectations of growth that the stock market has and the poor action in the US$ and coincident rise in gold.

PERMALINK
Category: MacroNotes.

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

3 Responses to “30 year bond auction”

leftback Says:
September 10th, 2009 at 2:08 pm
Interesting isn’t it… almost as though someone was expecting more instability. Someone must think the long bond is going to appreciate over the next few months. You probably wouldn’t want to hold this to maturity, would you?
jeff in indy Says:
September 10th, 2009 at 4:15 pm
has the Fed stopped by into the curve?
KidDynamite Says:
September 10th, 2009 at 9:08 pm
yeah – who the fk is buying 30 year treasuries with reckless abandon at these yields – other than The Fed? If it’s China, I had the epiphany today that they MUST be buying stocks as well – with both hands…