The auction saw a higher-than-expected yield and a tail of 0.4 basis points, deviating from the recent average of -0.2 basis points.
The US Treasury sold 30-year bonds at a high yield of 5.216%, slightly above the when-issued (WI) level of 5.212% at auction time. The tail, or difference between the high yield and WI level, was 0.4 basis points, compared to an average of -0.2 basis points in prior auctions.
The bid-to-cover ratio and participation metrics showed mixed results. Dealers took 11.6% of the bonds, above the average of 10.6%, while indirect bidders accounted for 67.0% of the auction, in line with recent trends. Direct bids were below the average of 22.5%.
Market reaction was muted, with limited immediate impact on broader asset classes. US 30-year mortgage rates remained stable at 6.67%, down marginally from 6.69% the prior week.