26 October 2023
The $52 billion offering’s yield rose to 4.899%, indicating demand didn’t meet expectations, with dealers getting a significant share due to low investor interest. Despite stronger September new home sales data, yields increased, with the 30-year bond yield reaching its highest since 2007. Rising Treasury yields are driven by expectations of the Federal Reserve’s prolonged policy rate and an expanded supply of notes and bonds. Forecasts suggest auction sizes may grow further, though some major banks anticipate smaller increments for the upcoming auctions.