US sells 30-year bonds at highest borrowing costs since 2001
The US Treasury auctioned 30-year bonds at a yield of 4.75%, the highest since 2001, reflecting persistent inflation and heavy supply. The sale drew weak demand, with a bid-to-cover ratio of 2.2, below the recent average. This signals rising long-term borrowing costs for the US government.
The 30-year auction was the worst since 2011, underscoring the market's concern about the fiscal outlook.
- kasey_junk
It feels weird to focus on US debt here when the entire west is facing similar challenges (except Switzerland…)
The UK bonds are the highest since the 90s and Japanese debt has never been higher.
There is a fiscal problem but it’s not an _American_ one unless you just assume all international finance is a US issue.
- JumpCrisscross
Treasuries are priced alongside term SOFR at one year [1][2]. The cost to insure U.S. debt is in line with where it's been for the last five years [3]. (And around where they were ten years ago.)
This has nothing to do with investors' perceptions of U.S. credit and everything to do with the financial rates environment.
[1] https://home.treasury.gov/resource-center/data-chart-center/...
[2] https://www.global-rates.com/en/interest-rates/cme-term-sofr...
- CamperBob2
I dunno, guys, maybe hiring a guy who bankrupted 4 casinos wasn't the right way to go after all
- rbanffy
Hear that? It’s the sound of an empire collapsing.
- storus
Another wave of inflation is coming in the next 6 months or what?