{"id":434350,"date":"2026-07-23T00:13:27","date_gmt":"2026-07-22T17:13:27","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/us-treasury-auctions-off-13-billion-of-20-year-bonds-at-a-high-yield-of-5-163-434350\/"},"modified":"2026-07-23T00:13:27","modified_gmt":"2026-07-22T17:13:27","slug":"us-treasury-auctions-off-13-billion-of-20-year-bonds-at-a-high-yield-of-5-163","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/us-treasury-auctions-off-13-billion-of-20-year-bonds-at-a-high-yield-of-5-163-434350\/","title":{"rendered":"US treasury auctions off $13 billion of 20 year bonds at a high yield of 5.163%"},"content":{"rendered":"<div>\n<ul>\n<li>High yield 5.163%  <\/li>\n<li>WI level at the time of the auction 5.158%.<\/li>\n<li>Tail 0.5 basis points versus six month average of -0.3 basis points.<\/li>\n<li> Bid to cover 2.64X versus average of 2.66X<\/li>\n<li>Directs 10.21% vs average of 23.9%<\/li>\n<li>Indirects 69.12% vs average of 65.9%<\/li>\n<li>Dealers 14.67% vs average of 10.1%<\/li>\n<\/ul>\n<p>Auction Grade:\u00a0D+(almost a D)<\/p>\n<p>The positive tail, the domestic demand being much weaker than average and the dealer amount being higher are all negatives.\u00a0 The\u00a0international demand\u00a0was marginally better. The Bid to cover was near the average.\u00a0\u00a0<\/p>\n<p class=\"PDq2pG_selectionAnchorContainer\">Key Components of a U.S. Treasury Auction<\/p>\n<ul>\n<li>High Yield (Stop-Out Yield): Final accepted yield.\n<ul>\n<li>\nLower than expected = Strong demand<\/li>\n<li>\nHigher than expected = Weak demand<\/li>\n<\/ul>\n<\/li>\n<li>Tail (vs. When-Issued Yield): Most watched metric.\n<ul>\n<li>Through (negative tail) = Very strong auction\n<\/li>\n<li>Positive tail = Weak auction\n<\/li>\n<\/ul>\n<\/li>\n<li>Bid-to-Cover Ratio: Total bids \u00f7 amount sold.\n<ul>\n<li>\nHigher than average = Strong demand<\/li>\n<li>\nLower than average = Weak demand<\/li>\n<\/ul>\n<\/li>\n<li>Indirect Bidders: Foreign central banks and overseas investors.\n<ul>\n<li>\nHigher participation = Strong foreign demand<\/li>\n<li>\nLower participation = Weak foreign demand<\/li>\n<\/ul>\n<\/li>\n<li>Direct Bidders: Domestic institutional investors.\n<ul>\n<li>\nHigher participation = Strong domestic demand<\/li>\n<li>\nLower participation = Weak domestic demand<\/li>\n<\/ul>\n<\/li>\n<li>Dealer Allocation: Primary dealers absorb unsold securities.\n<ul>\n<li>\nLower allocation = Bullish (private demand strong)<\/li>\n<li>\nHigher allocation = Bearish (demand weak)<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>Strong Auction Signals<\/p>\n<ul>\n<li>\n\u2714\ufe0f Auction clears through the WI yield (i.e. s lower than the WI level at the time of the auction\u00a0<\/li>\n<li>\n\u2714\ufe0f High bid-to-cover\n<\/li>\n<li>\n\u2714\ufe0f Strong indirect and direct bidding\n<\/li>\n<li>\n\u2714\ufe0f Low dealer take\n<\/li>\n<\/ul>\n<p>Typical Market Reaction: Treasury yields fall, bond prices rise, and stocks often benefit.<\/p>\n<p>Weak Auction Signals<\/p>\n<ul>\n<li>\n\u274c Positive tail\n<\/li>\n<li>\n\u274c Low bid-to-cover\n<\/li>\n<li>\n\u274c Weak indirect\/direct demand<\/li>\n<\/ul>\n<p>                            This article was written by Greg Michalowski at investinglive.com.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>High yield 5.163% WI level at the time of the auction 5.158%. Tail 0.5 basis points versus six month average of -0.3 basis points. Bid to cover 2.64X versus average of 2.66X&hellip;<\/p>\n","protected":false},"author":216,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[86],"tags":[],"class_list":["post-434350","post","type-post","status-publish","format-standard","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/434350","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/users\/216"}],"replies":[{"embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/comments?post=434350"}],"version-history":[{"count":0,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/434350\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media?parent=434350"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/categories?post=434350"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/tags?post=434350"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}