13 October 2023
Weak demand in a recent Treasury bond auction raises alarms as the U.S. sells $20 billion of 30-year bonds, with dealers absorbing an unusually high 18% of the supply. The narrow auction tail and rising yields reveal declining demand amidst surging federal deficits and the Federal Reserve’s quantitative tightening, fueling concerns over Wall Street’s ability to handle the escalating U.S. debt supply.