US Treasury 30-Year Bond Auction Yields 5.058%, Highest Since 2007

The US Treasury conducted a $22 billion reopening auction of 30-year bonds on local time 9th afternoon, with the yield determined at 5.058%, marking the highest level since 2007. The auction attracted strong demand as the bid-to-cover ratio rose to 2.44x from 2.33x in the previous month, while the yield came in 0.3 basis points below the when-issued trading level. This represented the third consecutive solid auction result following strong demand for 3-year and 10-year note sales earlier in the week, with overseas investor participation reaching its highest level since October 2024.

US Treasury 30-Year Bond Auction Yields 5.058%

The US Treasury announced that the reopening auction of $22 billion in 30-year bonds resulted in a yield of 5.058%. This yield marked an increase of 3.8 basis points compared to the previous month's 5.020% and represented the highest level since 2007. The yield exceeded 5.0% for the third consecutive month.

The bid-to-cover ratio reached 2.44x, up from 2.33x in the previous auction. This marked the highest ratio since March (2.45x) and exceeded the average of 2.39x from the previous six reopening auctions.

US Treasury 30-year bond auction results. Source: US Treasury Department website

The auction yield came in 0.3 basis points below the when-issued trading level, indicating that the bonds were sold at a lower yield than market expectations before the auction.

Indirect Bidder Rate Reaches 77.7%

The indirect bidder rate, which reflects overseas investor demand, jumped to 77.7%, up 17.7 percentage points from the previous month. This represented the highest indirect bidder participation since October 2024.

The direct bidder rate fell sharply to 12.2%, down 13.1 percentage points from the previous auction. The primary dealer takedown, representing the portion of unsold bonds absorbed by primary dealers, decreased to 10.1%, down 3.6 percentage points.

Secondary Market Response to Auction Results

In the secondary market for US Treasuries, the 30-year bond yield extended its decline shortly after the auction results were announced just after 1:00 PM New York time.

US Treasury 30-year bond yield movement before and after auction. Source: Yonhap Infomax

FAQ

What was the yield on the US Treasury 30-year bond auction held on local time 9th?

The US Treasury 30-year bond reopening auction on local time 9th resulted in a yield of 5.058%, which was 3.8 basis points higher than the previous month's 5.020% and marked the highest level since 2007.

How did overseas investor demand perform in the 30-year Treasury auction?

The indirect bidder rate, which reflects overseas investor demand, reached 77.7% in the auction, up 17.7 percentage points from the previous month and marking the highest level since October 2024.