Yield on 30-year U.S. Treasury bond rises after auction, last down 1.6 basis points at 4.66%

Yield on 30-year U.S. Treasury bond rises after auction, last down 1.6 basis points at 4.66%

The yield on the 30-year U.S. Treasury bond has increased following the latest auction, marking a significant shift in the market dynamics. The auction, which took place on Tuesday, saw strong demand from nondealers, pushing the yield higher.

The Treasury Department sold $58 billion in 3-year Treasury notes, with nondealers bidding at an above-average rate of 91.6% [1]. This high demand indicates a robust appetite for long-term securities among investors. As a result, dealers only needed to cover 8.4% of the auction, the lowest percentage on record for this maturity.

The auction also produced a stop-through of 0.8 basis points, further signaling strong demand. Following the auction, Treasury yields remained higher, with the 3-year rate climbing to 3.49% [1].

This increase in yield for the 30-year Treasury bond reflects broader market conditions and investor sentiment. The rise in yields suggests that investors are expecting higher inflation and economic growth, which can influence long-term interest rates.

Investors and financial professionals should closely monitor these developments as they can impact various aspects of the financial market, including bond prices, mortgage rates, and the overall economy.

References:
[1] MarketWatch. (2025). Treasury's 3-year auction produces strong results. Retrieved from https://www.marketwatch.com/livecoverage/stock-market-today-nasdaq-eyes-record-dow-sp500-up-jobs-revision-oracle-earnings/card/treasury-s-3-year-auction-produces-strong-results-Vo7swQjAbMGyYGv1uQoX