30-Year Treasury Auction A Success Ahead of FOMC
The U.S Treasury picked an interesting time to sell a 30-Year Long Bond auction. This was also an early-close auction. After all, this is the day that the FOMC is due to talk about or install more quantitative easing measures.…
The Treasury noted, “In view of the upcoming FOMC statement scheduled to be released around 12:30 p.m. on September 13, 2012, the noncompetition and competitive closing times for the 29-year 11-month bond auction to be held on September 13, 2012, will be 11:00 a.m. and 11:30 a.m. ET, respectively.”
The bond auction priced at $97.088998 for a yield to maturity of 2.896%. It is important to know that the on-the-run 30-year WI was at almost 2.91% or so, so this was considered a strong demand auction. The average bid-to-cover had been 2.62 for prior 30-year auctions, and today’s bid-to-cover was 2.68. Some $34,884,951,500 was tendered in dollars. The low yield was 2.80% and the median yield was 2.86%.
CNBC’s Rick Santelli said that he would give this auction a “B+” equivalent of a school grade and that is after prior auctions from the Treasury this week failed to show much interest.
Here is the competitive accepted dollar amounts; Primary Dealer $6,357,550,000 Direct Bidder $1,606,500,000 Indirect Bidder $5,025,900,000
JON C. OGG
Contact [email protected] for any questions or corrections.
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.