The U.S. Treasury Department saw robust demand for the reopened $22 billion sale of 30-year bonds on Thursday, as record-high end-user demand coincided with a historically low share taken by primary dealers, indicating minimal need for dealer support amid robust investor appetite. The bond, however, did not price well, picking up a high yield of 4.734%, slightly above the expected rate at the bid deadline. But demand was 2.38 times the amount of debt on offer, in line with that of last month and the longer-term average. September’s 30-year auction was also strong as the end-user rate hit the highest level in more than two years.
Ahead of the auction, JP Morgan analysts noted that declining Treasury market volatility and market depth near the top of its recent range were two key factors likely to support demand for the 30-year bond sale.
“It feels like just a couple weeks ago, everyone was freaking out about the 30-year hitting 5%….
