US Treasury’s $22 Billion 30-Year Bond Auction Attracts Above-Average Demand

• US Treasury auctioned $22 billion 30-year bonds at 5.618% yield.
• Auction saw above-average demand with a 2.54x bid-to-cover ratio.
• Yield settled 0.1 basis point above ‘when issued’ level.

The U.S. Treasury concluded its long-term debt sales on Thursday with an auction of $22 billion in 30-year bonds. The debt was sold at a high yield of 5.618%, marking an increase from last month’s 5.308% for a similar offering. Despite yields lingering near multi-decade highs, the auction attracted above-average demand, evidenced by a bid-to-cover ratio of 2.54x, surpassing the average. Direct and indirect bids also exceeded their respective averages, though the yield settled 0.1 basis point above the ‘when issued’ level. Longer-dated Treasuries had edged higher in anticipation of the sale, which was seen as a test of investor appetite.