Demand Slack at US 30-Year Bond Sale Second Day Running
Thursday's US 30-year bond auction disappointed with a 0.4 basis point tail, the second straight day of weak demand.
34 min ago6 min read
US Treasury Auction Kickoff Tepid, Bitcoin Faces Test From 10-Year Sale
Weak demand at Monday's 3-year Treasury sale sets up a test for bitcoin ahead of Tuesday's 10-year auction and inflation data.
09/11/2026 20:417 min read
Monday's first sale of US government debt drew cautious buyers, setting up a key test on Tuesday when $42 billion in 10-year notes goes to auction just hours after the latest inflation numbers.
The 10-year yield influences mortgage rates and stock valuations. Bitcoin (BTC) does not generate yield. As government bond yields rise, the opportunity cost of holding a non-yielding asset like bitcoin increases.
How Did Monday’s Sale Go?
The US is borrowing $125 billion over three auctions this week. The opening sale on Monday placed $58 billion of 3-year notes at a yield of 4.627%.
Bids totaled 2.53 times the amount on offer, lower than the typical 2.64 coverage ratio, according to investingLive. Foreign and indirect bidders took 55.5% of the sale, below their average of 62.7%.
The dynamic is straightforward. Weaker demand forces the US to offer higher yields.
Why Does Tuesday’s Timing Matter?
The government releases October's inflation figures at 8:30 a.m. ET. The 10-year note auction closes at 1 p.m.
Economists project consumer prices rose roughly 0.3% in the month, Kiplinger reported. Some analysts already anticipate a Federal Reserve rate increase on December 9.
“Our baseline call remains a 25-basis-point hike in December,” said Pooja Sriram, senior US economist at Barclays.
Does Bitcoin Always Fall When Rates Rise?
Not necessarily. In early October the 10-year yield climbed above 5.35%, a level not seen since 2002. Bitcoin ended that month roughly 7% lower.
But in May 2025, a poorly received 20-year bond auction sent the S&P 500 down 1.6%. Bitcoin reached an all-time high on the same day.
Who Pays for America’s Debt?
Interest payments on US debt now exceed defense spending. Net interest costs reached $1.1 trillion in the last fiscal year, compared with $965 billion for defense, according to the American Action Forum.
Total outstanding federal debt stands at $40.56 trillion. The Treasury said this week's auctions will raise $28 billion in new cash.
A $25 billion 30-year bond sale follows on Thursday. By then, lenders' final terms for the week will be known.
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Disclaimer: this article comes from third-party media and is provided for reference only. It does not constitute investment advice. Crypto and other financial products carry significant price volatility risk, so please make your own decisions carefully.
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