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30-Yr Bond Auction  
Released On 11/7/2018 1:00:00 PM For 11/7/2018 1:00:00 PM
Auction Results
Total Amount$19 B 
Coupon Rate3.375% 
Bid/Cover2.06 
Yield Awarded3.418% 
CUSIP Number912810SE9 
Originally Announced CUSIP912810SE9 

Highlights
Results are soft for the monthly 30-year bond auction, where coverage, at 2.06, was the lowest in at least 9 years and the bidding was sloppy, pulling up the high yield to the awarded 3.418 percent, more than 2 basis points above the 1:00 bid. In contrast with yesterday's well-received auction of the 10-year, end investor demand for the bond was the weakest since August 2015, albeit still slightly stronger than the long-term average, with non-dealers taking down 62 percent of the $19 billion. The 3.418 percent high yield was 7.4 basis points above last month's rate and the highest awarded for the bond since June 2014.

Definition
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
 
[Chart]

Data Source: Haver Analytics
 
[Chart]
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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