Foreign investor participation in an auction for the 30-year bond was the smallest in six years, worsening the sell-off in the bond market on Thursday.
The Treasury Department auctioned $25 billion in 30-year bonds, but demand was weak. The government offered 4.819% in highest yield, about 0.8 basis points more than the pre-bidding deadline. Higher yields are a sign the government had to pay more to entice investors.
The foreign participation was more telling. The indirect bidder category, considered to be foreign investors, bought 58.7% of the supply. This was the lowest amount bought since the auction in 2019, according to data analyzed by Barron’s.
