Is the Bond Market Signaling a Major Shift? Treasury Analysis

Last week the question was whether foreign investors would pull back from financing US debt. This week the bond market answered. The 5 year Treasury auction was, in the host's words, an absolute disaster, the second largest tail on record, and even the healthier looking 7 year cleared only because indirect bidders, the proxy for foreign and institutional demand, took far less than usual and other buyers had to fill the gap. Since then the 10 year has surged through 5.2% and the 30 year hit a 22 year high. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 Did treasuries give us the answer 00:43 The 5 year auction was a disaster 01:33 Foreign demand steps back 02:25 Yields surge across the curve 02:49 TLT at a record low 03:06 The bond market tightens on its own 03:23 The SoftBank hurdle rate 03:47 Could demand come back 04:34 The fiscal feedback loop 05:57 The Fed's balance sheet 06:45 Confidence or launching pad #tastylive #signalvsnoise #treasuries #bondyields #foreigndemand #tlt #auction #macro #optionstrading #stockmarket tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.