CLAIM versus Reality: The Claims is "GOLDMAN SACHS DROPS DOOMSDAY STATEMENT: U.S. BONDS HAVE NO BUYERS" The reality is quite Different

The Internet is abuzz with the claim "Goldman Sachs just admitted the long end of U.S. Treasury market is “totally bidless.” Translation: almost nobody wants the 10- to 30-year debt the U.S. is trying to sell. No buyers. None. Zero."

The Doomsday Claim goes on the say:

"While Treasury Secretary Scott Bessent tells Congress we’re in an “illiquid period,” doubles then triples long-bond buybacks, taps the General Treasury Account to fund it and openly says “I am the house.” Yields are surging anyway.

The 10-year has pushed toward 5.3% and the 30-year is even higher, levels not seen in years while Japan, one of the biggest foreign holders, keeps selling Treasuries and bringing money home.

This was exactly warned by Japan’s @yutokanzakireal  back on July 6, that the measures being prepared by Bank of Japan will affect the lives of billions of people and apologized to people of the West. 

TRANSLATED:

Soon after, Scott Bessent intervened and effectively took over BoJ operations which Japanese policymakers heavily criticized. If the same ”bidless” condition hits the short-dated treasuries market, the entire U.S. debt market (and global) collapses. The U.S. debt crisis will turn into a global liquidity crisis.

The Actual Reality

This Claim is fear mongering.

In the most recent treasury auction of 10y (Sept 9, 39b) and 30y (Sept 10, 22b), the bid-to-cover ratio (total bids divided by the amount accepted) both increased to 2.71 (up .21) and 2.61 (up 0.23). This ratio measures the amount of institutional bids for treasury when the government issues new debt, vs the amount they actually get. Buying intention is well over what is offered by government.

So in the Ten Year Treasury Sale, they got $2.71 in Bids for every $1 they offered in Bonds.  In the 30-year Treasury sale, they got $2.61 bid for each dollar offered in Bonds.Citing high bid-to-cover ratios on recent 10Y (2.71) and 30Y (2.61) auctions shuts down the 'totally bidless' exaggeration.

Primary demand is holding up fine—don't let headline driven fear mongering cloud the actual auction tape.