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30Y Auction Stops Through Thanks To Near-Record Direct Bid

After a soft 3Y and a stellar 10Y auction, moments ago the Treasury concluded its weekly issuance of coupon paper with a 30Y auction that came in smack in the middle.

The auction, a reopening of 29Year-10Month cusip UK2, priced at a high yield of 4.889%, up modestly from 8.44% in June and the highest long-end auction since January's 4.913%, which was a record for the tenor (for now). It also stopped through the When Issued 4.890% by 0.1basis point, the second consecutive stop though.

30y auction stops through thanks to near record direct bid

The bid to cover was 2.383, down from 2.430 in June but in the recent range; indeed it priced just below the six-auction average of 2.399.

The internals were also average, with Indirects awarded 59.8%, down from 65.2% in June, and below the recent average of 63.0%. And with Dealers taking just 12.8%, the recent trend of near record Directs continued, as they took down 27.4% today, the highest since October 2011, and the third highest on record.

30y auction stops through thanks to near record direct bid

Overall, this was a mediocre, forgettable auction, with yields on the verge of hitting record highs...

30y auction stops through thanks to near record direct bid

... yet one which certainly took advantage of today's bid across the curve despite yet another markewide meltup.

via July 10th 2025