"Treasuries Under Pressure: Yields Rise Amid Global Bond Auctions"

US Treasuries fell for a fifth session as demand for long-term government debt globally wanes amid a flurry of bond auctions. Yields have risen, with the 30-year yield approaching 5%. Investors are adjusting bets on Federal Reserve interest-rate cuts following a strong US labor market report last week.

The auction of 3-year notes saw soft demand, initiating a $119 billion slate of Treasury coupon offerings. Yields are on the rise as traders shift expectations for rate cuts. Long bonds are facing pressure as traditional buyers retreat, causing global long-end weakness.

Long-dated Japanese bonds sold off, impacting global markets and pushing German bund yields higher. Concerns about fiscal outlooks in the UK and Japan are contributing to the bond market jitters. Political events in Japan ahead of elections are also affecting bond yields.

Treasuries are facing contradictory risks surrounding Trump’s tariff policies, US fiscal policy, and Fed outlook. Trump’s tax-and-spending bill is expected to widen the deficit, leading to supply concerns. Market strategists predict 30-year bond yields could hit 5% amid tariff uncertainty.

The administration’s tariff threats have not yet significantly affected the US economy, with companies not cutting back on hiring. Trump has indicated no extensions on levies set to hit in August, further adding tariffs on copper products. Market experts believe fears of hiring cutbacks due to tariff uncertainty are unfounded.

Read more at Yahoo Finance: Treasuries Fall for Fifth Day as Pressure Builds Amid Auctions