U.S. 30-Year Treasury Auction Yield Tops 5% for First Time Since 2007

The U.S. Treasury’s $25 billion sale of 30-year bonds on May 13, 2026, drew weaker-than-expected demand, with the high yield reaching 5.046%, the first auction yield above 5% since August 2007. The result tailed by 0.5 basis point versus pre-auction trading levels, signaling investors required a higher yield to absorb the supply. The high yield rose from 4.876% at the April auction. It was the second consecutive long-bond auction to tail, following four straight auctions that had stopped through. The bid-to-cover ratio fell to 2.303 from 2.385 in April and was below the six-auction average of 2.43, marking the weakest demand since November 2025. Indirect bidders, a proxy for foreign demand, took 66.6%, up from 64.1% in April. Direct bidders bought 21.74%, while dealers were left with 11.7%. Rising inflation concerns and fading Federal Reserve rate-cut expectations have pushed long-term yields higher, increasing scrutiny of U.S. deficits, debt supply and leveraged trading strategies.