US sells 30-year bonds at 4.189% vs 4.175% WI

<ul><li>Highest yield of the cycle (beats Nov 2022 at 4.08%)</li><li>Bit to cover at 2.42 vs 2.43 prior</li></ul><p>The 1.4 basis point tail is not a good sign for the fixed income market. I thought the 4% handle might pull in bids but the history of tails at new issues was too much to overcome.</p><p>The follow-through so far has been minimal but it bears watching carefully.</p><p>"The post-CPI kneejerk rally in Treasuries was largely faded with rates little changed on the day in the run-up to 1pm. Since the result, we've seen a modest selloff in the long end," writes BMO.</p>

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