Treasury's 30-year bond sale hits 5.618% high yield on $22B

• At the auction, the high yield was 5.618%.

• The when-issued level at the time of the auction was 5.617%.

• A tail of 0.1 basis point was seen, versus the average tail of -0.1 basis point.

• Bid-to-cover came in at 2.54 times, compared to the average of 2.41 times.

• Direct bidders took 20.89% of the award, against the average of 20.6%.

• Indirect allocations were 72.32%, while the average is 69.1%.

• Dealers received 6.79% of the supply, versus the average of 10.3%.

The auction received a B grade.

All things considered, the sale was solid. Because the high yield came in slightly above the WI level, a small tail was produced instead of the average stop-through. Demand metrics, however, were stronger. The bid-to-cover ratio surpassed its average, indirect demand exceeded its average, and direct bidding was marginally higher. Dealers ended up with a much smaller portion than usual. While the small tail slightly detracts from the result, the stronger demand supports an above-average grade.