Long Bond Skyrockets as Treasury Plans to Stop Selling 30-Years

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The U.S Treasury plans to stop selling 30-year bonds because it no longer needs the securities for the government's borrowing needs, a disclosure that lifted the issue to its biggest one-day gain in more than a decade.

Around midday, the long bond was up 4 15/32 to 107 1/32, yielding 4.92%. The yield is 29 basis points below the prior level. The two-year note was off 3/32 to 100 16/32, yielding 2.49%. The five-year was also down 3/32, to 104 8/32, yielding 3.60%. The 10-year Treasury gained 14/32 to 105 3/32 to yield 4.35%.

The Treasury also set plans to sell $23 billion in notes next week. The U.S. government started regularly issuing 30-year bonds in 1977.