When was the last time 30 year U.S. treasuries went no bid two times in a row?
— Financelot (@FinanceLancelot) October 12, 2023
Ahhh it was a terrible 30 year auction causing yields to jump. Apparently no one is buying anymore, warning that we're very close to the end for markets. https://t.co/TDdTFR5SHQ
— Financelot (@FinanceLancelot) October 12, 2023
SOMA is the Fedederal Reserve's purchases. The Fed conducts open market operations, such as buying and selling U.S. Treasury securities, to influence the money supply.
By halting SOMA two auctions in a row they're indirectly reducing liquidity in the banking system. https://t.co/eT7ABBXK5z pic.twitter.com/xNbxOVpXt7
— Financelot (@FinanceLancelot) October 12, 2023
“The forces underlying the Treasury debt market are extremely adverse as the US is on an unsustainable fiscal path…”
Source: https://t.co/w9alzw3Lhr
— Gold Telegraph ⚡ (@GoldTelegraph_) October 12, 2023
For those keeping track, US debt just jumped by another $40 billion in one day.
We are now at $33.55 trillion in Federal debt, just 25 days after it hit a record $33 trillion.
At the current pace, the US would add $1 trillion in Federal debt every 45 days.
Since 2008, the US… pic.twitter.com/Wp5oG1A3pO
— The Kobeissi Letter (@KobeissiLetter) October 12, 2023
Investors in 30yr bond are down 10% in 2 months. pic.twitter.com/s9pkyPia8t
— Joseph Wang (@josephwang) October 12, 2023
Treasury bond auction runs into weak demand amid fears that soaring US debt will overwhelm Wall Street
- A Treasury bond auction saw weak demand on Thursday amid fears soaring US debt will overwhelm Wall Street.
- The US sold $20 billion of 30-year bonds, but dealers had to take up more supply after investors balked.
- The soft auction sent yields on longer-dated Treasurys sharply higher.
A Treasury bond auction Thursday saw weak demand, adding to growing alarms that the explosion in the supply of US debt could overwhelm Wall Street.
The US sold $20 billion of 30-year bonds, but dealers had to take up 18% of the supply, more than the typical share of about 11%, after investors balked.
The auction tail, or the gap between the lowest bid price versus the average, was the narrowest since November 2021, according to the Financial Times, representing another sign of waning demand.
The yield on the 30-year Treasury jumped 12 basis points to 4.856%, and the 10-year yield surged 10 basis points to 4.7%.