Market Weekly: May 17 – 23 2020

#23754
ThePitBoss
Participant

[quote=”ThePitBoss” post=13580]US Treasury 20-year sales today for the first time in 34 years.

The initial auction of $20 billion is a reminder of how much debt the US is piling on. The notes are trading at 1.230%-1.220% on bid/ask in the when-issued market. That puts them much closer to 30-year bonds (1.44%) than 10-years (0.71%).

“An auction concession of some sort is warranted; although we anticipate the new issue will be well absorbed even if it comes at a modest discount,” writes Ian Lyngen, head of US rates strategy at BMO.[/quote]
[b]
US 20-Year Bond Auction:[/b]

– High Yield Rate: 1.220% – WI: 1.213%
– Bid-Cover Ratio: 2.530
– Direct Accepted: 14.710%
– Indirect Accepted: 60.728%