{"id":1551479,"date":"2025-08-07T17:33:30","date_gmt":"2025-08-07T21:33:30","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1551479"},"modified":"2025-08-07T17:33:30","modified_gmt":"2025-08-07T21:33:30","slug":"yields-spike-after-very-ugly-tailing-30y-auction-sparks-steepening-fears","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/yields-spike-after-very-ugly-tailing-30y-auction-sparks-steepening-fears\/1551479\/","title":{"rendered":"Yields Spike After Very Ugly, Tailing 30Y Auction Sparks Steepening Fears"},"content":{"rendered":"

Yields Spike After Very Ugly, Tailing 30Y Auction Sparks Steepening Fears<\/span><\/p>\n

\n

After two decidedly ugly auctions, including a poor 3Y on Tuesday and a very poor 10Y yesterday, moments ago the Treasury concluded the week’s trio of refunding auctions when it sold $25BN in 30Y paper. And this particular auction may have been the worst of the lot.\u00a0<\/p>\n

The final refunding auction priced at a high yield of 4.813%, which while lower than July’s 4.889% was not low enough, and with the When Issued at 4.792%, the auction tailed the When Issued by 2.1bps, the biggest tail since last August.\u00a0<\/p>\n

<\/a><\/p>\n

The bid to cover was just as ugly: dropping to 2.266% (from 2.383) it was the lowest since November 2023 (and obviously far below the six auction average).<\/p>\n

The internals were not quite so fire, although here too the picture was bad: Indirects dropped again, sliding from 59.8% in July to 59.5%, the lowest since May – which was a major outlier – and the second lowest going back all the way to 2021. And with Directs awarded 23.03%, down modestly from 27.40% last month and below the six-auction average of 24.2%, Dealers were left holding a whopping 17.46%, the highest August 2024 when they were left holding 19.18%.<\/p>\n

<\/a><\/p>\n

Bottom line: the last coupon auction of the week was also the ugliest, and the bond market saw right through it, sending 10% yields surging to session highs, just around 4.25%. What is more ominous, is that today’s auction is a harbinger of what will happen when Powell finally does cut, and the market immediately reprices inflation expectations, sending long end yields exploding higher in a steepening move that will make your nose bleed.\u00a0<\/p>\n

<\/a><\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nThu, 08\/07\/2025 – 13:33<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/markets\/yields-spike-after-very-ugly-tailing-30y-auction-sparks-steepening-fears<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

Yields Spike After Very Ugly, Tailing 30Y Auction Sparks Steepening Fears After two decidedly ugly auctions, including a poor 3Y on Tuesday and a very…<\/p>\n","protected":false},"author":0,"featured_media":1551480,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1551479","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1551479","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1551479"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1551479\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1551480"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1551479"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1551479"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1551479"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}