The Treasury’s recent auction of $16 billion in 20-year bonds disappointed significantly, marking one of the poorest performances since the auction’s inception in May 2020. The auction yielded a high rate of 4.664%, notably lower than January’s 4.846% and tailed its expected yield by 2 basis points, the largest tail since November 2024. Foreign demand was notably weak, with indirect bidders—often foreign central banks—taking only 55.167% of the auction, the second lowest on record. This lack of interest led to a spike in longer-dated Treasury yields, with both 10-year and 30-year yields reaching session highs amid ongoing fiscal policy discussions.
US Treasury records poor demand in disappointing $16B 20Y auction
