The Treasury said it sold 30-year bonds at a high yield of 4.53 per cent, the lowest ever for a 30-year bond auction. The previous low was 5.52 per cent in the last 30-year bond auction in August 2001.
"We thought the auction went superbly because there clearly was strong demand," Treasury Undersecretary Randal Quarles told Bloomberg TV after the auction. "All in all, it couldn't have gone better," he added.
Long-term Treasury prices rose after the auction, but shorter-dated Treasuries were steady to lower after a Federal Reserve official hinted at the need for more interest rate rises.
| Markets are very careful at judging inflation. This news says that the markets aren't worried about inflation right now. Read it again: lowest 30-year bond yield ever, from 1977 when the bonds were first sold to now. |
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