2018 Economic Calendar
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30-Yr Bond Auction  
Released On 1/11/2018 1:00:00 PM For 1/11/2018 1:00:00 PM
Auction Results
Total Amount$12 B 
Coupon Rate2.750% 
Yield Awarded2.867% 
CUSIP Number912810RZ3 
Originally Announced CUSIP912810RZ3 

Results are exceptionally strong for the monthly 30-year bond auction, where coverage, at 2.74, was the highest in 6 years and the bidding very tight, pulling down the high yield to the awarded 2.867 percent, about 2.3 basis points below the 1:00 bid. Demand from end investors was unusually high, with non-dealers taking down 79 percent of the $12 billion offering, their largest share in more than 10 years. And it was indirect bidders, often seen as a proxy for foreign buyers, that received the lion's share of the allocation, taking down 71.49 percent. The 2.867 percent high yield was 6.4 basis points above the December auction rate but well shy of the 3.170 percent peak auction yield of 2017 set in March.

Treasury notes are sold at regularly scheduled public auctions. The competitive bids at these auctions determine the interest rate paid on each Treasury note issue. A group of securities dealers, known as primary dealers, are authorized and obligated to submit competitive tenders at Treasury auctions. Dealers can hold the bills, resell the bills to their clients or trade them with other securities firms. Typically, the New York Fed approves about 20 securities firms to be primary dealers but that number dropped sharply during the 2008 financial crisis as some were merged into other firms or went bankrupt. The Fed has been rebuilding that number regularly and the latest list can be found here. The Treasury announces the amount, date and time of the 30-year note auction. Through 2008, the 30-year bond auctions had been quarterly. In 2009, the Treasury added more auctions that recur almost monthly to help fund the expanded federal deficit. The 30-year bonds are announced around the first week of the month and then auctioned the following week. Generally, the 30-year bonds are issued (settled) on the 15th of the month, unless it falls on a weekend or holiday, and then they are issued on the next business day. The issuance of new 30-year bonds went on hiatus in 2001 but the Treasury reinstituted them in 2006. (Department of the Treasury)  Why Investors Care

Data Source: Haver Analytics
The Chart shows the high yield awarded at monthly 30-year bond auctions since January 2012, including the latest auction results. The dates on the chart and the the grid are auction dates.
Data Source: Haver Analytics

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