Uh-oh, No One Likes Our 30-year Debt

A bad 30-year US bond sale just occurred.  Really bad.  While the yield on the $22 billion offering was lower than last month, it was higher than expected.  And demand was generaly weak, particularly from foreign buyers.  We are going to have to continue to issue massive amounts of new and rollover debt.  The uncertainty about our economy and our trade policy are not going to help in selling that at the kind of rates we want to sell it at.  After-market rates haven’t gone up but only because the sell-off in stocks continues and some are going to the perceived safety of bonds.  I say perceived because as inflation revives, interest rates will rise and people will have loses on those bonds.