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Banking, finance, and taxes

30-Year Bond Auction A Mild Success (TBT)

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By Jon C. Ogg Updated Published

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The latest results from a 30-Year Treasury Bond auction did not manage to turn the bond momentum back in favor of lower yields and higher prices. The bid went out at 3.38% and the good news is that investors did not sell it off more.  Rick Santelli on CNBC gave it a “B” grade, but he had the same observation that we have had: it is a shame that the much higher yields did not draw more investors back into the debt markets.

To show just how much rates have risen, the 3.38% compared to a 3.27% just in the last couple of days.  The yield was about 3.12% just a week ago.

Of the bids, 29% were listed as indirect and the auction had a 2.7 bid-to-cover ratio.  That bid-to-cover is deemed a good bid-to-cover in a long bond auction.

ProShares UltraShort Lehman 20+ (NYSE: TBT) is the double-short (inverse) 20+ year spectrum of Treasury bonds and its price is up 3.7% at $20.68 today.  This was under $19.00 just a week ago.

JON C. OGG

Contact [email protected] for any questions or corrections.

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About the Author Jon C. Ogg →

Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.

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