US 30-Year Treasury Auction Yield Highest Since 2001 at 5.216%
The US government sold $25 billion of 30-year Treasury bonds at 5.216%, the highest auction yield since 2001, while the 10-year note auction cleared at its highest yield since 2007.
Demand for higher compensation to hold long-dated US government debt was evident at this week’s Treasury auctions. The Treasury sold $25 billion of 30-year bonds at 5.216% on Thursday, the highest 30-year auction yield since 2001. A day earlier, a $42 billion 10-year note auction cleared at 4.683%, the highest since 2007.
The latest results extend a trend from July 9, when 30-year bonds were sold at 5.058%, the highest at that point since 2007. During the 2020 pandemic, same-maturity auction yields were below 2.00%.
Higher financing costs come as the US deficit widens. The Treasury reported a July budget deficit of $432 billion, up $141 billion from a year earlier and the largest July shortfall on record.
Source: The Kobeissi Letter