After a solid 3Y and a mediocre 10Y auction, moments ago the Treasury completed the week's accelerated sale of coupon paper when it auctioned off $18 billion in 30Y paper (in the form of a 20Y-11M reopening). The auction, one day ahead of the Fed's "pause" announcement, was solid with impressive metrics.

The high yield of 3.908% was above last month's 3.741% and was the highest going back to November's 4.080%. However, it also stopped through the 3.919% When Issued by 1.1bps, the 3rd consecutive non-tailing auction.

The bid to cover of 2.522 indicated stellar buyside demand, printing above last month's 2.426 and in fact, was the highest going all the way back to Jan 2020.

The Internals were also stellar, with Indiracts awarded 72.9%, the highest since January, and with Directs awarded 18.1%, meant that Dealers were left with a record low award of just 8.96%.

Overall, this was a stellar auction, perhaps one of the best 30Y sales on record...

... and signals that as far as the bond market is concerned, the Fed's tightening cycle is largely over.