Treasury's 30-year bond sale hits 5.618% high yield on $22B
The US Treasury auctioned $22 billion in 30-year bonds at a 5.618% high yield, achieving strong demand and a B grade.
The 10-year yield hit 4.80%, just shy of the Jan 2025 high, as the bond bears' breakout above 4.75% targets 5%.
Crude oil has risen above $90, reaching $90.60. The seemingly endless war has stoked inflation fears, pushing the 10-year yield higher. It has now extended to 4.80%, the first time since January 2025. This is just below the January 2025 peak of 4.823%. If it moves above that level, the next target is 5%.
The 10-year yield has broken above the 4.60%â4.75% consolidation range that had contained trading since July 21. Bond bears are now in controlâhigher yields mean lower bond prices.
The key level now is 4.75%. A drop back below that would disappoint the bears and question the momentum. If it stays above, the next major stop is 5%.
The bond bear train is leaving consolidation station and gaining momentum.
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The US Treasury auctioned $22 billion in 30-year bonds at a 5.618% high yield, achieving strong demand and a B grade.
The Atlanta Fed's GDPNow model for Q3 GDP growth was trimmed to 3.6% from 3.7% after weaker wholesale inventories data.
US wholesale inventories rose less than expected in August, while wholesale sales surged.
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