The US Treasury bond index posts its biggest daily loss since May 1 on Fed concerns and auctions

This week, the brutal bear market in U.S. government debt seemed for a moment to be on its last legs. Concerns about the Federal Reserve and huge auction sizes were high again on Friday, underscoring the fragility of any gains.

A disastrous auction of 30-year Treasury bonds sent long-term Treasury yields soaring on Thursday as investors demanded additional compensation to finance a ballooning budget deficit. An hour later, Fed Chairman Jerome Powell told reporters at the International Monetary Fund conference in Washington that another rate hike to curb inflation was still possible and would trigger a rise in short-term yields.