Treasury yields extend slide after solid 30-year bond sale


U.S. Treasury prices rallied, pushing yields lower, following an auction for $24 billion of 30-year government bonds that “stopped through” by 1.6 basis points, a sign of strong appetite for the debt available for sale. A stop-through indicates when the highest yield the Treasury sold in the auction falls below the highest yield expected when the auction began – the “when issued” level. The 30-year Treasury yield is down to 2.313%, from 2.345% at the end of Monday. Investors had suggested demand for the 30-year bond could be strong given increased foreign demand. Longer-maturity bonds are popular with Japanese insurance companies and pension funds who are attracted by higher U.S. yields compared to domestic investments, especially when hedged for foreign currency fluctuations.


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