2017 Economic Calendar
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30-Yr Bond Auction  
Released On 12/12/2017 1:00:00 PM For 12/12/2017 1:00:00 PM
Auction Results
Total Amount$12 B 
Coupon Rate2.750% 
Yield Awarded2.804% 

Results are solid for the monthly 30-year bond auction, where coverage, at 2.48, was the second highest of the year and the bidding tight, pulling down the high yield to the awarded 2.804 percent, about 1.2 basis points below the 1:00 bid. End investor demand was fairly strong too, though not exceptional, with non-dealers taking down 71 percent of the $12 billion offering, about average for this year but much stronger than the 59 percent long term average. The flattening of the Treasury yield curve is illustrated by the 2.804 percent high yield, which in a period when short term rates rose steadily, was just 0.3 basis points above the November auction rate and 36.6 basis points below the long term high yield peak set in March, the highest since September 2014.

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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