Treasury has just auctioned $16bln in new 30-yr bonds, and the issue tailed about 2bps stopping at a 4.49% yld.  The auction had a 2.6 bid to cover compared to the recent average of 2.56.  What does Bid-to-Cover Ratio mean? It is the ratio that compares the number of bids received in a Treasury security auction to the number of bids accepted.  A ratio above 2.0 usually indicates a successful auction comprised of aggressive bids. A low ratio is an indication of a disappointing auction, marked by a wide bid-ask spread.  Indirect bidders took 32.5% of the bonds compared to 36.8% in April.  While the auction was not bad, we are taking a little heat as stocks are making their way back to unchanged/+.  Keep an eye on current levels as we are now off 5 ticks from morning levels and price changes for the worse could be in the cards.  Austin mortgage borrowers are encouraged to lock in mortgage interest rates to take advantage of the current pricing.