Bonds & Rates
Home›Bonds & Rates›Government Bonds›US Treasury sells $18 billion in 20-year bonds at 5.20…
US Treasury sells $18 billion in 20-year bonds at 5.204% yield
The 20-year auction had a 0.5 bps tail, with a 2.53x bid-to-cover ratio and softer indirect demand from international buyers.
The US Treasury sold $18 billion of 20-year notes at a high yield of 5.204%, a modestly weak outcome that came with the auction tailing the when-issued level by 0.5 bps, according to Forexlive.
The auction results showed a 2.53x bid-to-cover ratio, below the roughly 2.66x average across six prior auctions. International buyers took 62.93% of the offering, while dealers absorbed 12.49% and direct (domestic) buyers accounted for 24.59%.
Forexlive noted that demand for duration still appeared cautious even after earlier action by the Treasury to support longer-dated securities. Earlier in the day, the Treasury said it would at least double the size of its long-end liquidity-support buybacks from $2 billion to $4 billion per operation, which had briefly helped push the 30-year yield down by nearly 10 bps.
Despite the secondary-market boost from the buyback announcement, the 20-year auction still tailed by 0.5 bps, suggesting the support did not fully remove investors' concerns about the long end.