Strong demand at the U.S. $22 bln 30-year Treasury auction eased long-end
pressure for a second straight day as the stop-out yield came in below traders’
expectations. BMO said primary dealer take-up fell to a record low, implying
greater absorption by end investors. The 30-year yield fell most after the sale,
retreating to about 5.33% from intraday highs but remained notably higher on the
day; the 10-year was roughly unchanged at 4.924%. Short-dated Treasures saw no
lift from the auction and yields ticked up slightly, indicating the bid
primarily relieved long-end selling pressure. Longer maturities remain pressured
by U.S. fiscal deficits, elevated issuance and inflation concerns.
