US Treasury’s $25B 30-Year Bond Auctions Tail by 3.1bps

The U.S. government conducted a sale of $22 billion in 30-year notes on Thursday, which saw a yield higher than expected amidst declining demand. This trend occurs as many investors express caution regarding duration exposure, especially with anticipated rate cuts approaching.

The notes were issued at a yield of 4.314%, exceeding the pre-sale rate of 4.283% but falling short of the 4.405% yield reached in the previous auction.

The bid-to-cover ratio for this auction increased slightly to 2.31 from the prior auction’s 2.30. However, there was a decrease in participation from both direct and indirect bidders, with rates of 50.5% and 65.2%, compared to six-month averages of 66.4% and 18.4%.

The yield during trading was at 4.303%, close to the session highs of approximately 4.314%.