Treasury bond auction runs into weak demand amid fears that soaring US debt will overwhelm Wall Street

Thu, 10/12/2023 - 15:44

Federal Reserve Chairman Jerome Powell and US Treasury Secretary Janet Yellen participate in a meeting of the Financial Stability Oversight Council at the US Treasury on July 28, 2023 in Washington, DC.
Kevin Dietsch/Getty Images

A Treasury bond auction saw weak demand on Thursday amid fears soaring US debt will overwhelm Wall Street.
The US sold $20 billion of 30-year bonds, but dealers had to take up more supply after investors balked.
The soft auction sent yields on longer-dated Treasurys sharply higher.

A Treasury bond auction Thursday saw weak demand, adding to growing alarms that the explosion in the supply of US debt could overwhelm Wall Street.

The US sold $20 billion of 30-year bonds, but dealers had to take up 18% of the supply, more than the typical share of about 11%, after investors balked.