U.S. Inflation Drop Fails to Save Long-term Bond Auction

The 30-year Treasury auction was dismal, with a noticeable tail, weak bid-to-cover ratio, and subdued foreign demand. Analysts called it a very poor auction. On a day when U.S. CPI sharply cooled, causing a drop in yields, the auction results pushed the 10-year Treasury yield up 2 basis points from its intraday low, slightly above the 4.18% mark.