So much for the bond rally

<p>Real money didn't show up at the 30-year Treasury sale today.</p><p>The market was looking for a yield of 4.716% but the Treasury had to pay 4.769% at the dutch auction to unload all $24 billion. That's a bad sign on real demand for bonds and suggests that a good portion of the recent retracement in long-end yields was about positioning rather than demand.</p><p>Non-dealer biddings was just 75.3% of the take-down versus 87.9% on average.</p><p>We've seen some bad 30-year auctions in the past year but this might be the worst one yet.</p><p>For broader markets, it's bullish for the US dollar and bearish for risk assets. The entire basis of the latest equity rally was on a top in yields and I wouldn't be feeling so confident about that after this sale.</p>

This article was written by Adam Button at www.forexlive.com.