US Treasury Sells $25 Billion in 30-Year Bonds at 5.046% Yield

The US Treasury Department sold $25 billion of 30-year bonds at a yield of 5.046%, slightly above the 5% coupon rate. The auction attracted strong interest, with a bid-to-cover ratio of 2.30, reflecting robust demand, particularly from foreign bidders, as part of the government's borrowing program.

The US Treasury Department announced the sale of $25 billion in 30-year government bonds, achieving a yield of 5.046%, slightly exceeding the 5% fixed coupon rate, according to auction results. This demonstrates investor demand for higher returns amid economic uncertainties.

A total of $63.50 billion was tendered for the auction, with an accepted amount nearing $30.93 billion. Noteworthy was the active involvement of indirect bidders, a cohort seen as representative of foreign demand. They procured $16.6 billion of the securities, underscoring strong international interest.

The auction achieved a bid-to-cover ratio of 2.30, signifying that demand from investors was over two times the bonds offered. This operation aligns with the US government's recurring borrowing strategy to manage public expenses and fiscal needs, selling 30-year securities regarded as global benchmarks.