The United States sold long-term debt at the highest borrowing cost since 2007, with investors securing yields above 5% in a Treasury auction for 30-year bonds amid expectations of rising inflationary pressures.
At an auction held on Wednesday, the US Treasury sold $25 billion in 30-year bonds at a high yield of 5.046%.
The bonds had traded in the secondary market at yields below the auction’s stop-out level ahead of the sale, signaling moderate demand. The result followed weaker-than-expected demand at earlier auctions this week for 3-year and 10-year Treasuries.
Soft demand for Treasuries reflects expectations that the Federal Reserve may keep interest rates higher for longer — and could raise them further — to contain inflationary pressures driven by the energy price shock linked to the Middle East conflict.
The United States sold long-term debt at the highest borrowing cost since 2007, with investors securing yields above 5% in a Treasury auction for 30-year bonds amid expectations of rising inflationary pressures.
At an auction held on Wednesday, the US Treasury sold $25 billion in 30-year bonds at a high yield of 5.046%.
The bonds had traded in the secondary market at yields below the auction’s stop-out level ahead of the sale, signaling moderate demand. The result followed weaker-than-expected demand at earlier auctions this week for 3-year and 10-year Treasuries.
Soft demand for Treasuries reflects expectations that the Federal Reserve may keep interest rates higher for longer — and could raise them further — to contain inflationary pressures driven by the energy price shock linked to the Middle East conflict.
