From Foundations to Fault Lines — Part I

Cracks in the Foundation

In this series:

• Part I: Cracks in the Foundations

• Part II: Collateral Fragility

• Part III: Seemingly Stable, Systemically Stressed

The foundation of demand for U.S. Treasuries, particularly at the long end of the curve, is showing signs of structural weakness. Yesterday's 10-year auction tailed 1.125 basis points—meaning it sold at a higher yield than expect…