Weak Demand Hits $25 Billion US 30-Year Bond Auction

Key Facts

The US Treasury sold $25 billion in 30-year bonds at a 5.441% yield, resulting in a 0.4 basis point tail. investingLive reported that the high yield exceeded the when-issued yield of 5.437%, signaling that the government had to offer higher returns than expected to clear the auction.

The bid-to-cover ratio fell to 2.36x, down from the six-auction average of 2.44x, while primary dealers were awarded 11.39% of the sale, significantly above the 9.49% average. This softening demand occurred as economic data on November 12, 2026, showed initial jobless claims reaching 200,000, slightly above the forecasted 195,000.

Market attention now turns to the Producer Price Index (PPI) release scheduled for November 13, 2026, with a monthly forecast of 0.4%. This data, combined with a speech by the Fed's Bowman on the same day, may provide further direction for long-term bond yields and inflation expectations.