Analysts stated that the US Treasury's auction of $22 billion in 30-year Treasury bonds yielded a winning bid of 5.058%, 0.3 basis points lower than the pre-auction market level, with a bid-to-cover ratio of 2.44, a positive result. Indirect bidders (mainly overseas institutions) accounted for a high 77.74%, indicating a significant increase in foreign investment after yields rose above 5%; while direct bidders from the US domestic market accounted for only 12.24%, indicating relatively weak domestic demand.
This suggests that foreign investment in US Treasuries is increasingly price-driven—only actively entering the market when yields provide sufficient compensation (covering duration risk and concerns about fiscal sustainability). This is not a trend of "massive repatriation," but rather an opportunistic allocation strategy, with high yields being the primary attraction.
The short-term positive is that it effectively alleviates upward pressure on long-term yields and avoids tail risks. For gold, the outlook is neutral to slightly bearish. High absolute yields still maintain the holding cost of gold, and the short-term volatile rebound pattern is likely to continue unless there is a significant inflection point in real interest rates. Overall, the recovery in demand for long-term US Treasuries still depends on the attractiveness of yields, rather than unconditional demand for safe-haven assets.
