The Treasury Department is finding that demand for U.S. government debt is no longer insatiable.
Bond prices are tumbling as the three-week selloff in global sovereign debt markets accelerates, pushing yields on 30-year U.S. bonds on Monday to the highest since November. That’s probably not a good omen as the Treasury prepares to sell $64 billion in notes and bonds the next three days.
Demand for the U.S. government securities sold at auction has declined in each of the past three months, after also slumping in the August-through-October 2014 period, data compiled by Bloomberg show. That’s a far cry from the surging investor interest that pushed demand to a record in 2012.
While the risk of higher yields is weighing on demand, the Treasury is also competing with more than $20 billion of debt slated to be sold by companies including Qualcomm Inc., Capital One Financial Corp. and Seagate Technology.
Read more at BLOOMBERG