Thursday afternoon’s sale of $23 billion in 30-year Treasury bonds came in “soft” and produced a modest selloff in the longest-dated maturities, according to BMO Capital Markets rates strategist Ben Jeffery. The auction was the final test this week of how well demand for U.S. government debt would hold up following increased worries that emerged last week about the fiscal outlook. Wednesday’s $38 billion auction of 10-year notes was described as “good” to “fair,” and Tuesday’s sale of $42 billion in 3-year notes was seen as strong. Treasury yields were mixed after Thursday’s auction results.
