With much trepidation ahead of refunding week following some dire forecasts about a deluge Treasury supply in the coming quarter, moments ago the Treasury sold the last coupon auction of the week when it placed $23BN in 30Y paper in willing hands and while the sky did not fall, the auction was clearly the ugliest of the lot. Stopping at a high yield of 4.189%, the 30Y auction priced at the highest yield since July 2011, and was well above last month's 3.910%; it also tailed the When Issued 4.175% by 1.4bps, the highest tail since February. The bid to cover was 2.42, the lowest since April and below the 6-auction ... (full story)