Weak U.S. 20-year Treasury Bond Auction with High Yield of 2.065%

The US Treasury 20-Year Bond Sale performed much worse than expected, garnering a D- rating across the Fixed Interest desk. The tail was +1.4 basis points with WI level at time of the auction 1.965% and the high yield of 2.065% at the auction.

Heading into the auction the ahead of the auction U.S. Treasuries yields were higher across the curve (bearish).

Auction Highlights

  • Duration: 20 Years
  • Amount:  $20 billion
  • High yield 2.065%
  • WI level at time of auction (2.051%)
  • Tail +1.4 basis points)
  • Bid-Cover Ratio: 2.34 vs six month average of 2.34X
  • Direct Accepted: 19.4% vs six month average of 18.5%
  • Indirect Accepted: 60.2% vs six month average of 62.0%
  • Dealers 20.4% vs six month average of 19.5%

Auction grade: D-

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