Treasury 30-Year Bond Sale Finds Buyers to Crown Good Refunding

The US government sold $25 billion of 30-year bonds at a lower-than-anticipated yield, soothing investor nerves about demand for longer-dated debt.

Yields on US Treasuries briefly retreated from the day’s highs after the solid auction result, though resumed climbing later in the trading day. The 30-year sale — the largest in more than two years — was the last of three Treasury note and bond auctions this week.

The new bonds found receptive buyers, even as investors remain uncertain on when exactly the Federal Reserve will start cutting interest rates this year.

“The Treasury went three for three on its February refunding with good auctions,” said Kim Rupert, an economist at Action Economics. “There’s almost a FOMO bid for yield now.”

The 30-year bonds were awarded at 4.36% on Thursday, compared with a yield of about 4.38% moments before 1 p.m. New York time, the bidding deadline. The lower yield indicates stronger demand than traders anticipated.

Size of US Treasury's Monthly 30 Year Bond Auction