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Just in -- Treasury’s $24 billion 30-year bond auction goes poorly today

Posted on 11/9/23 at 1:28 pm
Posted by NC_Tigah
Member since Sep 2003
126478 posts
Posted on 11/9/23 at 1:28 pm
quote:

Treasury’s $24 billion 30-year bond auction goes poorly, trader says
By Vivien Lou Chen
Nov. 9, 2023 at 1:07 p.m. ET


Thursday afternoon’s $24 billion sale of 30-year Treasury bonds drew weaker-than-expected demand, according to Greg Faranello, head of U.S. rates trading and strategy at AmeriVet Securities in New York, citing the bid-to-cover ratio and yield concession which came in. The 1 p.m. Eastern time auction caps a trio of sales that have taken place since Tuesday, totaling $112 billion, and which were seen as important tests of demand. Treasury yields moved up slightly after the Thursday’s auction results came out, reflecting a further selloff in underlying government debt.

LINK
Investors expressed concern about the government's ability to manage its debt, and about overall health of the US economy. Yield was expected to remain fairly flat. The unexpected 11 BP jump was the highest in nearly 1 1/2 yrs.
Posted by LSUBanker
Gonzales, La
Member since Sep 2003
2576 posts
Posted on 11/9/23 at 1:34 pm to
Investors are still not convinced on where rates are headed. Maybe they're thinking I can get higher yield later if I wait it out.

I'm hearing foreign interest of US debt is very low.
This post was edited on 11/9/23 at 8:33 pm
Posted by LSUBanker
Gonzales, La
Member since Sep 2003
2576 posts
Posted on 11/9/23 at 1:34 pm to
(no message)
This post was edited on 11/9/23 at 1:35 pm
Posted by LSURussian
Member since Feb 2005
128588 posts
Posted on 11/9/23 at 1:35 pm to
Didn't you hear, NC, that the U.S. treasury market "collapsed" this morning because of a cyber attack on a Chinese bank?

Drama Queens....Drama Queens EVERYWHERE!
Posted by TrueTiger
Chicken's most valuable
Member since Sep 2004
72277 posts
Posted on 11/9/23 at 1:36 pm to

Posted by NC_Tigah
Member since Sep 2003
126478 posts
Posted on 11/9/23 at 1:41 pm to
quote:

Didn't you hear, NC
Posted by Bass Tiger
Member since Oct 2014
48778 posts
Posted on 11/9/23 at 1:48 pm to
Doesn't make any sense why people aren't snapping up all the government bonds they can afford?

US is going to blast by $34 trillion debt by the end of the Q1 in 2024.
US debt service will blast through $1 trillion annually by the end of Q1 in 2024

People need to show their faith and belief in our federal government and buy as much debt as they can afford.
Posted by RealityWinsOut
Member since Oct 2023
1454 posts
Posted on 11/9/23 at 2:06 pm to
What are the Treasury's possible response to this?
Posted by LuckyTiger
Someone's Alter
Member since Dec 2008
47098 posts
Posted on 11/9/23 at 2:20 pm to
There are people that will tell you this means nothing.

Those people are idiots.
Posted by SloaneRanger
Upper Hurstville
Member since Jan 2014
9416 posts
Posted on 11/9/23 at 2:34 pm to
Who would want to own our debt at this duration? Regardless of what happens with rates over that period, it’s obvious that the government intends to just inflate the debt away.
Posted by LSURussian
Member since Feb 2005
128588 posts
Posted on 11/9/23 at 3:02 pm to
quote:

There are people that will tell you this means nothing.

Those people are idiots.
You're a lot more knowledgeable about financial markets than I am so could you please explain to me the significance of the the Treasury's 30-year bond auction drawing less demand than was expected?

I'd especially like for you to teach me what "the bid-to-cover ratio and yield concession" means.

I'd really, really appreciate it.
Posted by Bard
Definitely NOT an admin
Member since Oct 2008
53432 posts
Posted on 11/9/23 at 3:04 pm to
quote:

US debt service will blast through $1 trillion annually by the end of Q1 in 2024


Where are you seeing this?
Posted by wutangfinancial
Treasure Valley
Member since Sep 2015
11460 posts
Posted on 11/9/23 at 3:22 pm to
I'm guessing the indirect bids were up too
Posted by tigersbh
Baton Rouge
Member since Oct 2005
10939 posts
Posted on 11/9/23 at 3:30 pm to
quote:

I'm hearing foreign interest of US debt is very low.


It should be. We’ll never pay it back. Only with worthless dollars.
Posted by TigerDoug
Lees Summit
Member since Mar 2017
692 posts
Posted on 11/9/23 at 3:45 pm to
quote:

Where are you seeing this?


Here is the most recent article that I saw on this. Analysis done by Bloomberg. LINK: US Debt costs hit $ 1 Trillion

Posted by auwaterfowler
Alabama
Member since Jan 2020
2265 posts
Posted on 11/9/23 at 4:02 pm to
quote:

Here is the most recent article that I saw on this. Analysis done by Bloomberg. LINK: US Debt costs hit $ 1 Trillion


If the $1 trillion number is correct, that’s almost $3,000 per year for every man, woman and child. Unsustainable.
Posted by deltaland
Member since Mar 2011
93555 posts
Posted on 11/9/23 at 4:07 pm to
What happens theoretically if people just stopped buying these bonds? Would it force govt to cut spending if they can’t sell the bonds to borrow the money to cover it?
Posted by TigerDoug
Lees Summit
Member since Mar 2017
692 posts
Posted on 11/9/23 at 4:17 pm to
Directly from the website I will post below.

As of September 2023 it costs $879 billion to maintain the debt, which is 14% of the total federal spending.

LINK: September 2023 - $879 Billion to maintain debt
Posted by NC_Tigah
Member since Sep 2003
126478 posts
Posted on 11/9/23 at 4:21 pm to
quote:

I'm guessing the indirect bids were up too
Up 3pts. But about avg for the year
Posted by 4cubbies
Member since Sep 2008
51565 posts
Posted on 11/9/23 at 4:23 pm to
quote:

and buy as much debt as they can afford.
I think the problem is Americans don’t have extra money to invest after managing their own debt.
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