Treasury's $16 billion auction of 20-year notes is met with lackluster demand
- Select a language for the TTS:
- UK English Female
- UK English Male
- US English Female
- US English Male
- Australian Female
- Australian Male
- Language selected: (auto detect) - EN
Play all audios:
Wednesday afternoon's sale of $16 billion in 20-year Treasury bonds produced below-average bidding by non-dealers. The auction was "lackluster" with a tail of 1.1 basis point
and non-dealer bidding of 83.1%, which is below the 84.9% refunding-month average, according to BMO Capital Markets strategist Vail Hartman. Soon after the results came in, Wednesday's
selloff in long-dated government debt picked up, sending the 30-year rate further above 5%, to almost 5.05%. The yield on the 20-year bond also rose to 5.08%, while the 10-year rate jumped
to 4.56%.