The last US debt auction of the week was $25 billion in 30-year bonds, the longest maturity the Treasury currently issues, and an auction size that is bigger than the typical 30-year one, but then our debt is a whole lot bigger than it used to be. Although down from last month’s 4.91%, at 4.75%, the rate was higher than expected and demand weak. People just aren’t going to buy long-term US debt without getting a pretty good interest stream. And that it makes it hard to get lower interest rates on purchases of things that matter a lot to people–cars, houses, etc.
