US 20-Year Treasury Bond Auction High Yield 4.927% with Strong Demand
The U.S. Treasury reopened $13 billion of 20-year Treasury bonds, with a high yield of 4.927%, lower than the pre-issuance trading level of 4.937% at the bid deadline at 1 p.m. New York time, indicating market demand exceeded expectations. At the bid deadline, the 20-year Treasury yield fell nearly 5 basis points during the day, and long bonds continued to maintain gains after the auction.
As the 20-year Treasury performed stronger than expected, the 10s20s30s yield curve retreated from the intraday high, reflecting support for long-end bonds in this auction.
Looking at the bid structure, primary dealers were allocated 8.5%, the lowest since January; indirect bidders' allocation rose to 71.6%, the highest since July 2024; direct bidders' allocation fell to 19.9%.
The bid-to-cover ratio for this auction was 2.75 times, slightly above the average of 2.74 times for the previous six reopenings of the same maturity.
