US Treasury 30~Year Bond Auction

Investment Rating - The report does not explicitly provide an investment rating for the industry or specific securities [1]. Core Insights - The upcoming auction on August 8, 2024, will offer $25 billion of 30-year bonds, unchanged from the previous auction [4]. - Thirty-year yields have decreased by 16 basis points from the last auction, currently trading around 4.25% [4]. - Indirect bidder participation has decreased to 60.8%, the lowest since November, while direct bidder participation has increased to 23.4%, the highest since December 2014 [4]. - Investment funds accounted for 74.5% of the total allocation, marking an increase from June's 73.4% and the highest since January [4]. - The auction had a tail of 2.3 basis points, while the previous auction had a stop-through of 1.3 basis points [4]. Summary by Sections Auction Statistics - The average size of the 30-year bond auction is$ 22.3 billion, with the July 2024 auction size at $22.0 billion [2]. - The cover ratio for the July auction was 2.30, slightly lower than the 1-year average of 2.39 [2]. - Direct and indirect bidders accounted for 84.1% of the total bids in July, with direct bidders at 23.4% and indirect bidders at 60.8% [2]. Auction Allotments - In the July auction, investment funds took 74.5% of the total allocation, while foreign and international bidders accounted for 7.4% [3]. - The total less SOMA for the July auction was$ 16.4 billion, with dealers and brokers taking $3.9 billion [3]. Bidding Aggressiveness - The auction bidding aggressiveness index indicates a more aggressive bidding environment compared to previous auctions [5][6]. Federal Reserve SOMA Add-ons - The Federal Reserve is expected to rollover$ 4.75 billion into its SOMA portfolio during the upcoming auction [4].