By Howard Packowitz
RATE FUTURES REPORT: Poor Bond Sale Weakens Entire Curve
CHICAGO (Dow Jones)–Lack of investor demand for 30-year cash Treasury bonds weighed on prices Thursday for long- and short-term U.S. interest rate futures.
Prices were lower and anticipated yields higher leading up to the $13 billion offering of reopened or previously sold 30-year bonds. The so-called price concession didn’t do much to attract investors. The bonds were sold at a yield of 4.52%, or 3.3 basis points above the yield just before the auction.
The auction results mean it will cost the government more to pay for its massive debt. It also means that "buyers just are not all that willing to lend Uncle Sam money at these yields for the long term," said Mike Larson, interest rate and real-estate analyst for Weiss Research.
Larson did not mince words to describe the auction.
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