We know why they’re selling it. The question is, why are they buying it?
The “it” here is the 30-year Treasury bond, which returned to the capital markets after a four-and-a-half year respite. By all accounts, the security’s return was a rousing success, at least for the government. Buyers were crawling over each other to grab a slice of government debt whose principal won’t be returned until 2036. Bloomberg News reports that yesterday’s bidding was such that the yield fell to 4.53%, the lowest on record for a 30-year Treasury.
