And so things are back to normal: following yesterday’s unexpectedly poor 10 Year auction, which tailed notably while the bid to cover dipped despite it trading at the -3.00% fails rate in repo, moments ago the Treasury sold $12 billion in a 30Y reopening of Cusip RQ3, at a yield of 2.72%, stopping through the 2.731% When Issued by 1.1 bps, the most since mid-2015.

This was explainable considering the repo rate ahead of today’s auction was a whopping -1.50%, which as the chart below shows, was the lowest on record.

The internals of the auction were solid, with the Bid to Cover rising from 2.50 to 2.72, if modestly below the 12 MTA. Indirects were predictably higher, printing at 60.9%, the highest since December, while Directs of 12% were the highest since October, leaving just 27% to the Dealers, the smallest allocation since December.

All in all a very solid auction which again shows that despite the sell off in the secondary market, when central banks can’t park equities in stocks, they will go to Treasurys, although judging by the move in gold, they may be starting to diversify.