Ten-year Treasury yield pulls off session lows after $39bln auction
The sale offered a brief reprieve but the 30-year yield stayed near its highest since 2002
Published
Chart: US30Y, US 30-year Treasury yield, one-minute prices, three sessions
The 10-year Treasury yield recovered from its session low on Wednesday after a $39bln bond auction drew strong demand, though it remained near levels last seen in 2002.
The 30-year Treasury yield touched 5.70% earlier in the day, its highest since 2002. The climb in long-dated yields has run largely uninterrupted since mid-September, even as the Treasury has carried out repeated $6bln buyback operations aimed at easing pressure on the market.
The 10-year yield has pushed past 5% repeatedly since climbing from 4.8% in early September, as investors demand higher returns amid concerns over inflation, government spending and a rise in corporate borrowing.
A solid auction result can support demand at the margin, but it has not reversed the broader climb in yields. With long-term borrowing costs still close to a 2002 high, the pressure on equity valuations that has built since mid-September remains in place, leaving stocks sensitive to interest-rate moves exposed even though Wednesday's sale showed no fresh deterioration in demand.