Treasuries Pare Gains After Another 30-Year Auction Goes Awry

  • Weak demand for bonds on day before November inflation data
  • Auction yield still lowest since January; other metrics good
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Treasury yields bounced from near session lows after demand for an auction of 30-year bonds was weaker than expected.

The auction drew a yield of 1.895%, more than three basis points higher than its yield in pre-sale trading moments before the 1 p.m. New York time bidding deadline, a sign that dealers overestimated demand. After the auction, the yield on existing 30-year Treasuries briefly erased a decline of as much as five basis points.