30-year bond auction shows solid demand despite deficits and debt

Bond Auction Analysis - The US 30-year long bond auction was considered "pretty good," indicating reasonable demand [1] - Yesterday's 10-year auction saw historically low dealer leftovers, suggesting strong investor demand [2] - Today's 30-year auction saw investors taking 90%, indicating aggressive demand for long-dated US Treasuries [3] - Demand for US Treasury auctions is currently more aggressive compared to other G7 nations [4] - Smaller dealer takedowns at auctions are preferable, indicating strong investor participation [4] Debt and Deficit Concerns - The US is paying $1.1 trillion in interest on its debt [6] - High debt servicing costs are taking a significant amount of money out of the US economy [7] - Despite debt concerns, the US economy shows positive aspects, with the Dow performing well [7] Investment Strategy - Older Americans with substantial 401ks should be cautious about aggressive equity allocations [8][9] - A transition from equities to fixed income is recommended while equity markets are still strong [9]