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10 Apr 2015
US 30-yr bond auction ends ugly – KBC
FXStreet (Barcelona) - The KBC Bank Research Team comments on yesterday’s US 30-yr bond auction, noting that the bidding details disappointed the markets.
Key Quotes
“Global core bond trading had two faces yesterday. In European dealings, the rally continued with a new high for the German Bund and new record low yields in Germany up until the 10-yr tenor.”
“However, as US investors entered the session, core bonds started drifting away. Continuing claims dropped to their lowest level since 2000 while equity markets again stormed ahead.”
“At the end of the session, an ugly $13B 30-yr Bond auction gave the final blow for US Treasuries especially at the long end of the curve.”
“At the end of the day, the US yield curve bear steepened with yields 1.6 bps (2-yr) to 6.9 bps (30-yr) higher).”
“In the US, the Treasury ended its mid-month refinancing operation with an ugly $13B 30-yr Nota auction.”
“The auction came on the heels of a decent 3-yr Note auction and a very good 10-yr Note auction earlier this week.”
“The 30-yr Bond auction stopped close to 3 full bps above the 1:00 PM bid side and the bid cover was very small (2.18 vs 2.43 average over the past year). Bidding details were disappointing with especially light direct bid.”
Key Quotes
“Global core bond trading had two faces yesterday. In European dealings, the rally continued with a new high for the German Bund and new record low yields in Germany up until the 10-yr tenor.”
“However, as US investors entered the session, core bonds started drifting away. Continuing claims dropped to their lowest level since 2000 while equity markets again stormed ahead.”
“At the end of the session, an ugly $13B 30-yr Bond auction gave the final blow for US Treasuries especially at the long end of the curve.”
“At the end of the day, the US yield curve bear steepened with yields 1.6 bps (2-yr) to 6.9 bps (30-yr) higher).”
“In the US, the Treasury ended its mid-month refinancing operation with an ugly $13B 30-yr Nota auction.”
“The auction came on the heels of a decent 3-yr Note auction and a very good 10-yr Note auction earlier this week.”
“The 30-yr Bond auction stopped close to 3 full bps above the 1:00 PM bid side and the bid cover was very small (2.18 vs 2.43 average over the past year). Bidding details were disappointing with especially light direct bid.”