Global Daily: Big Beautiful Blowout

The US Treasury’s first bond auction since Moody’s downgraded the United States on Friday fell flat. The 5% yields that were offered failed to draw sufficient demand, as investors demanded a higher risk premium to hold long-dated paper. Yields on 30-year bonds jumped just over 12 basis points to almost 5.10%, the highest level in a year. It wasn’t just the US. Japan and the UK also flubbed their auctions this week, rounding out a global hat trick of bond market indigestion.