Treasuries Slide as Auction Signals Lackluster Investor Appetite

Treasuries fell after a trio of US government auctions drew relatively poor demand, signaling investor fatigue with market volatility stemming from failed diplomatic attempts to end the US military operation in Iran.

Declines in the $31 trillion market, which extended after a sale of seven-year notes on Thursday, left yields higher by two to nine basis points on Thursday. This week’s two-, five-, and seven year securities were all sold at yields that were higher than indicated in the market — the worst showing by three auctions in a month since May 2024.