Ten-year yields may drop to as low as one per cent, while those on
30-year bonds could reach 1.
The spread on
30-year bonds over five-year notes shrank to 218 basis points, the narrowest since Sept.
5260 Yen Japanese government bond futures jumped to a record on Friday and the 20-year yield plunged after a decent sale of
30-year bonds implied solid demand for superlong maturities and prompted a wave of short covering.
It follows the recent placement of GBP750m of conventional
30-year bonds and proceeds from both bond issues will be used to repay short-term bank debt.
2tn of 10-year securities on July 6 and JPY600bn of
30-year bonds two days later.
Brokers said bond-selling, which results in a higher yield, was also spurred in part by position squaring for Thursday's auction for
30-year bonds.
75 billion each of 10- and
30-year bonds, and $1 billion of two-year floating-rate notes.
Issuance of
30-year bonds will strengthen and diversify global sources of demand for Treasury securities.
To finance construction, EHS borrowed $69 million of
30-year bonds through DASNY to be repaid through the residence hall's rental income.
government stopped issuing
30-year bonds, the longest Treasury bond rate is significantly lower than high-grade corporate bond rates.
The United States Treasury has announced that it will no longer sell
30-year bonds.
In late May, the market rallied as the Treasury Department completed its sixth debt buyback of the year, purchasing $2 billion in
30-year bonds.
