Zhitong Finance and Economics learned that on Thursday, the U.S. Treasury Department once again successfully held a $25 billion 30-year Treasury bond auction this week, with a surge in foreign demand and the largest single transaction record in 13 months.
The final closing rate for the 30-year Treasury bonds in this auction is 436%, compared to 4. in the previous auction on January 11229% is up. The pre-release rate for this auction is 438%, the final closing rate is 2 basis points lower than the pre-issue rate, indicating that there is no "tail" phenomenon reflecting weak demand. This rate difference is the largest since January 2023, highlighting the strong demand for the auction.
The bid multiplier for this auction reached 24, which is not only higher than the previous 237, also exceeding the average of the last six auctions by 238, showing that the market is highly concerned about the treasury bonds.
In the demand component, domestic direct bidders, including hedging, pension, common, insurance companies, banks, institutions and individuals, were allocated 145%, slightly below the recent average of 172%, indicating that domestic demand is at a general level.
Overseas demand has become a highlight of the auction. Indirect bidders, usually including foreign ** banks, etc., participate in the auction through primary dealers, and their allocation ratio is as high as 707%, the highest since June 2023 and well above the 67 in January8%, indicating that overseas investors have a very strong demand for long-term US Treasuries.
The allocation ratio of primary dealers is 148%, although slightly higher than the previous month's 145%, still below the recent average of 172%, reflecting increased interest in the auction from investors other than primary dealers.
The U.S. Treasury sold a record $42 billion of 10-year Treasuries at lower-than-expected yields yesterday, as buyers flocked to shatter fears of a lack of demand. The total issuance of US Treasuries will reach $10 trillion this year, and in an election year, Biden will need to finance a lot of stimulus packages.