U.S. Borrows for 30 Years at a Lower Cost Than Ever Before
- Auction yield breached previous record low from October
- Bond will carry a 2% coupon, record low for a 30-year
A statue of Albert Gallatin, former U.S. Treasury secretary, stands outside the U.S. Treasury building in Washington, D.C.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
The U.S. government’s sale of 30-year bonds Thursday drew a record low yield of 2.061% after the Treasury rally spurred by the spread of the Wuhan coronavirus in China and around the world helped drive rates across the curve to multi-month lows.
The previous all-time low for a 30-year sale was 2.17% in October. The auction fared better than expected, as trading in the minutes before the 1 p.m. New York time bidding deadline suggested a yield closer to 2.07%. Thursday’s new issue sale also resulted in an unprecedented low coupon rate of 2%, down from the previous record of 2.25%