The U.S. Treasury has conducted a 30-year Treasury bond auction and the results looked impressive. The news seems a bit surprising considering what has happened with a Ukraine-Russia ceasefire and a lack of horrific news out of the Middle East, but Europe and a potential for an independent Scotland from the United Kingdom are acting to keep demand up.
Thursday’s auction went off at a 3.24% yield, slightly under the on-the-run rate of 3.26% on the existing 30-year Treasury bond. One driving force may have been a recent bond sell-off, even if “bargain buying” and “3.24%” sound like they should not even be in the same sentence. Still, U.S. yields are very attractive when compared to Europe and Japan.
Another sign of strength was a 2.67 bid to cover ratio, implying that $2.67 worth of bids were submitted for every $1.00 accepted. Indirect demand (foreign investors) was 45.5% and direct bidding (U.S. banks and brokers) was up at 21.8%.
Thursday’s auction was ahead of next week’s FOMC meeting. This is a meeting where investors may start to get a first look at Fed-speak that does not include an “extended period” in the guidance for low rates.
READ ALSO: Should Regulation Cost $2 Trillion in the Manufacturing Sector?
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
