Manus on Markets: Costliest US Bond Sale Since 2001
- The U.S. Treasury sold $25 billion of 30-year bonds at a yield of about 5.23%, marking the highest borrowing cost since 2001.
- Investor concerns include rising debt, persistent inflation, and heavy Treasury supply, which pressure long-term yields above 5%.
- The Treasury is considering reducing long-term bond sales and shifting toward shorter maturities to manage borrowing costs and refinancing risks.
- Despite multi-decade high yields, investors remain cautious about locking in long-term debt, indicating uncertain demand and wariness that the selloff might continue.
20 Articles
20 Articles
The government now spends more on interest than on the military
The US Treasury sold $25 billion of 30-year bonds at a 5.22 percent yield, the most it has paid to borrow that far out since 2001, reports the Financial Times. That's up from 5.06 percent at July's sale, and 4.91 percent just before Trump's second term began. — Read the rest The post The government now spends more on interest than on the military appeared first on Boing Boing.
Yields on long-term Treasury bonds reached record highs after a long period of stagnation in the US Treasury's auction. Concerns about inflation, fueled by rising public debt and geopolitical tensions, pushed up government borrowing costs, while the high yields offered kept investor demand strong.
US Sells 30-Year Bonds at Highest Interest Rate Since 2001
The U.S. government sold 30‑year bonds at their highest interest rate in a generation, reflecting investors’ mounting demand for greater compensation to shoulder America’s persistent budget deficits and increasing debt levels. On Aug. 13, the Treasury completed a $25 billion sale of 30-year bonds at a rate of 5.216 percent, the most since 2001. Demand was robust, with big banks, institutions, and foreign investors purchasing a sizable share of t…
Washington doesn't have to offer its debtors as much money as it has been since 2001 to buy long-running debt papers. Demand remains high, but the costs for Washington too.
Manus on Markets: Costliest US bond sale since 2001
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