Treasury Sells $25 Billion Long Bonds at 4.813% Amid Steady Demand

The U.S. Treasury wrapped up its latest round of coupon supply with a $25 billion sale of 30-year bonds that cleared at 4.813%, 2.1 basis points above the when-issued level. The auction drew a bid-to-cover ratio of 2.27, below last month’s 2.38, while indirect bidders—often a proxy for foreign demand—took 59.5% of the issue. Primary dealers were awarded 17.5%, with direct bidders accounting for 23.0%. The long-bond sale followed solid demand for shorter maturities earlier in the week. A $3-year offering stopped at 3.669%, down from 3.891% in July, with a bid-cover of 2.53. The $10-year note auction cleared at 4.255%, compared with 4.362% previously, and attracted a bid-cover of 2.35. In both cases, indirect participation stayed above 54%, suggesting steady overseas interest. Yields at all three auctions declined from the prior month, reflecting a rally in Treasuries ahead of next week’s inflation data and Federal Reserve policy meeting minutes. Nevertheless, the modest tail on the 30-year sale and slightly softer bid-cover ratios indicate investors demanded a bit more concession to absorb the supply at the long end of the curve.