(Bloomberg) -- US Treasuries rose after an auction of 30-year debt drew solid demand as long-dated yields edge away from their highest levels in more than two decades.
The gains sent yields lower across maturities on Thursday, with those on 30-year bonds down by six basis points to 5.61% — off their highest levels since 2002. A $22 billion sale of the US government’s longest bond was met with good investor appetite, echoing this week’s strong 10-year auction.
“Demand held up,” said Molly Brooks, rates strategist at TD Securities. “It’s a good sign for those that want to dip their toes back in the long end.”
Longer-term debt from around the world has been selling off in recent months as angst has built up around the Iran war’s effect on energy costs and the fallout for inflation. Fiscal concerns have also added to the pressure, with 30-year Treasury yields knocking out a series of milestone levels as they surged in recent weeks.
On Thursday, however, they slid as President Donald Trump said in a social media post that he’d hold off on attacking Iran again until after the US midterms on Nov. 3. Long-dated yields extended their declines as oil prices fell from an earlier peak around $105 per barrel.