10-Year U.S. Debt Auction Sees Strong Demand—30-Year Bond Sale Now in the Spotlight

Wall Street breathes sigh of relief as Treasury''s 10-year auction clears without a hitch. Bond traders—temporarily—stop doomscrolling.

Next up: The 30-year long bond sale. Will appetite hold or fade like a meme stock rally?

Pundits claim ''healthy demand'' proves market stability. Meanwhile, yield chasers mainline hopium ahead of Fed''s next move.

Bonus jab: Nothing says ''confidence'' like institutional investors playing hot potato with government IOUs.

Worsening debt situation

As of June, the U.S. total gross national debt is over $36 trillion, more than 120% of the country''s gross domestic product (GDP).

The deficit, or the excess of government expenditure over revenue, was $1.8 trillion in 2024. The figure is expected to increase by $2.4 trillion in the coming years due to Trump''s tax cut plans. As of now, the U.S. pays $1 trillion as the cost of servicing the debt.

The new issuance, therefore, is more likely to exacerbate the problem and has several analysts pointing to bitcoin and gold as a hedge against the fiscal crisis.