One day after a mediocre, tailing 10Y reopening, the Treasury held its last Treasury auction for the week, selling $12 billion in 30Y bonds at a yield of 2.936%, above May's 2.87% and the highest since 3.050% in May, tailing the When Issued of 2.926% by 1 basis point. This was the 4th tailing 30Y auction in the past 5.

The internals were unremarkable: the bid-to-cover of 2.31 was virtually unchanged from last month's 2.32, but above the 6 month average of 2.27%. Total bids of $27.9b for $12.3b in bonds sold vs $27.8b in bids for $12.0b in bonds sold at the previous auction

The buyside demand was stable with indirect bidders awarded 61.7% vs previous auction’s 63.7%, and modestly below the MMA of 63.6%. Direct bidders were awarded 6.4% vs 6.7% in June, leaving Primary Dealers with 31.9% of the final aware, just higher than last auction’s 29.6%.

In retrospect, considering the recent volatility in the TSY market coupled with today's surprise Jackson Hole, end-of-QE "trial balloon" by the ECB, it is perhaps more notable that this week's three auctions were not more disappointing.