U.S. Treasury 30-Year Yield Rises 10 Basis Points After $24 Billion Auction, Surges 19 Basis Points

The U.S. Treasury 30-year yield rose by 10 basis points to 4.715%, following a disappointing $24 billion auction of 30-year bonds. The auction resulted in a large tail and low demand, causing the yield to surge by 19 basis points. The bid-to-cover ratio was 2.24, the lowest since December 2021. The long-end of the bond market is experiencing illiquidity and sagging demand, leading to a sharp rebound in the 30-year Treasury yield. The market is also facing rising inflation expectations, adding more risks to the Treasury market.