US Treasury's Latest 30-Year Bond Auction Draws Weakest Demand in Nearly Two Years

The United States Department of the Treasury has announced the results of its latest 30-year bond auction, which saw $25 billion in securities sold at a high yield of 4.813%. This marks the weakest demand for such bonds in nearly two years, according to official data released on Thursday.

Key Auction Metrics: The bid-to-cover ratio, a critical indicator of demand, stood at 2.27, the lowest since November 2023. Investors placed bids totaling $56.6 billion for the $25 billion available, with primary dealers accepting $4.3 billion (approximately 17%) and direct and indirect bidders accounting for $20.5 billion (around 82%) of the accepted bids.

Market Reaction: Following the auction's announcement, the yield on the 30-year Treasury bond experienced a slight increase, rising by 1.6 basis points to 4.827%.