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.
Treasury confirmed a buyback of up to $6 billion, a figure that disappointed, while 30-year yields touched a session high of 5.29%.
Bessent has clearly taken it upon himself to act as god across FX and bond markets. A 'more than $4 billion' buyback was floated by the Treasury last month, and the confirmed figures are now out. The total is $6 billion, a number that appears to disappoint. It is also just "up to $6 billion", so there is a ceiling in place.
That means more T-bills and reduced long-dated Treasury supply overall, although the cut is smaller than feared. The 30-year yield is at its high for the session, gaining 3 basis points to 5.29%.
I have a bid in at 7%.
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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.
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