The U.S. Treasury sold $25 billion in 30-year bonds Thursday at the highest yield in a quarter century, reaching 5.216%, a day after a 10-year auction produced the steepest financing cost since 2007. The sales come amid a fiscal-year deficit of $1.17 trillion, up 15%, with 30-year mortgage rates at 6.69% and U.S. debt outstanding near $31 trillion, doubling since 2018. Fitch kept its AA+ rating but warned of widening fiscal deficits in 2026. The Treasury hinted at potential cuts to long-bond supply in its latest quarterly borrowing statement, as investors continue demanding higher compensation to absorb growing government debt amid persistent inflation uncertainty and fiscal risks.
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