Multiple Factors Behind High Yield at Recent 30-Year U.S. Treasury Auction

Dow Jones
08/18

0512 GMT - The U.S. Treasury's 30-year bond auction last week, which delivered the highest yield since 2001, and the data surrounding it make it worth going beyond the headline, says Barclays' Anshul Pradhan in a note. July payrolls, CPI and retail sales came in soft, and all three data points should have pulled yields lower, the strategist says. "While not unique to the U.S., long-end yields have risen globally to varying degrees, we think three factors are at play: the budget deficit outlook, AI-related corporate issuance, and the changing Treasury buyer base," he says.

 

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