{"id":436548,"date":"2026-08-20T00:17:39","date_gmt":"2026-08-19T17:17:39","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/us-treasury-auctions-off-18-billion-of-20-year-bonds-at-a-high-yield-of-5-204-436548\/"},"modified":"2026-08-20T00:17:39","modified_gmt":"2026-08-19T17:17:39","slug":"us-treasury-auctions-off-18-billion-of-20-year-bonds-at-a-high-yield-of-5-204","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/us-treasury-auctions-off-18-billion-of-20-year-bonds-at-a-high-yield-of-5-204-436548\/","title":{"rendered":"US Treasury auctions off $18 billion of 20-year bonds at a high yield of 5.204%"},"content":{"rendered":"<div>\n<ul style=\"box-sizing: inherit; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-variant-numeric: inherit; font-variant-east-asian: inherit; font-variant-alternates: inherit; font-variant-position: inherit; font-weight: 400; font-stretch: inherit; line-height: inherit; font-size-adjust: inherit; font-kerning: inherit; font-feature-settings: inherit; font-language-override: inherit; vertical-align: baseline; border: 0; margin: 0 0 20px; padding: 0 0 0 19px; font-family: Inter, InterFallback, serif; list-style: outside; text-indent: -3px; color: rgba(0, 0, 0, 1); letter-spacing: normal; orphans: 2; text-transform: none; widows: 2; word-spacing: 0; white-space: normal; background-color: rgba(255, 255, 255, 1); text-decoration-style: initial; text-decoration-color: initial; font-size: 16px\">\n<li style=\"box-sizing: inherit; font-size-adjust: inherit; font-kerning: inherit; font-feature-settings: inherit; font-language-override: inherit; vertical-align: baseline; border: 0; margin: 0 0 4px; padding: 0\">High yield: 5.204%<\/li>\n<li style=\"box-sizing: inherit; font-size-adjust: inherit; font-kerning: inherit; font-feature-settings: inherit; font-language-override: inherit; vertical-align: baseline; border: 0; margin: 0 0 4px; padding: 0\">WI level at the time of the auction 5.199%<\/li>\n<li style=\"box-sizing: inherit; font-size-adjust: inherit; font-kerning: inherit; font-feature-settings: inherit; font-language-override: inherit; vertical-align: baseline; border: 0; margin: 0 0 4px; padding: 0\">Tail 0.5 bps <\/li>\n<li style=\"box-sizing: inherit; font-size-adjust: inherit; font-kerning: inherit; font-feature-settings: inherit; font-language-override: inherit; vertical-align: baseline; border: 0; margin: 0 0 4px; padding: 0\">Bid-to-cover ratio 2.53X <\/li>\n<li style=\"box-sizing: inherit; font-size-adjust: inherit; font-kerning: inherit; font-feature-settings: inherit; font-language-override: inherit; vertical-align: baseline; border: 0; margin: 0 0 4px; padding: 0\">Direct (domestic buyers) 24.59%\u00a0<\/li>\n<li style=\"box-sizing: inherit; font-size-adjust: inherit; font-kerning: inherit; font-feature-settings: inherit; font-language-override: inherit; vertical-align: baseline; border: 0; margin: 0 0 4px; padding: 0\">Indirect (international buyers) 62.93% <\/li>\n<li style=\"box-sizing: inherit; font-size-adjust: inherit; font-kerning: inherit; font-feature-settings: inherit; font-language-override: inherit; vertical-align: baseline; border: 0; margin: 0 0 4px; padding: 0\">Dealers 12.49%<\/li>\n<\/ul>\n<p class=\"PDq2pG_selectionAnchorContainer\">The US Treasury sold $18 billion of 20-year bonds at a high yield of 5.204%, with the auction showing a somewhat soft demand profile despite today&#8217;s earlier announcement that Treasury would at least double the size of its long-end liquidity-support buybacks.<\/p>\n<p>The auction tailed by 0.5bp, with the high yield coming in at 5.204% versus a 5.199% when-issued yield immediately before the auction. A tail generally indicates that investors demanded a slightly higher yield than the market had anticipated, making this a modestly weak result. The bid-to-cover ratio came in at 2.53x, below the roughly 2.66x six-auction average. International buyers took 62.93%, almost 3 percentage points below the recent average, while dealers absorbed a larger-than-usual share of the issue. <\/p>\n<p>Earlier today, the Treasury announced that it would at least double the size of its liquidity-support buybacks for longer-dated securities from $2 billion to $4 billion per operation, prompting a sharp rally in long-dated Treasuries. The 30-year yield briefly fell almost 10bp following the announcement. <\/p>\n<p>One might therefore have expected the announcement to generate stronger demand for today&#8217;s 20-year auction. Instead, the auction still tailed by 0.5bp. That suggests that while Treasury&#8217;s announcement provided a  short-term boost to the secondary market, it did not completely eliminate investors&#8217; concerns.<\/p>\n<\/p>\n<p>                            This article was written by Giuseppe Dellamotta at investinglive.com.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>High yield: 5.204% WI level at the time of the auction 5.199% Tail 0.5 bps Bid-to-cover ratio 2.53X Direct (domestic buyers) 24.59%\u00a0 Indirect (international buyers) 62.93% Dealers 12.49% The US Treasury sold&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-436548","post","type-post","status-publish","format-standard","hentry","category-market-news"],"_links":{"self":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/436548","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=436548"}],"version-history":[{"count":0,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/posts\/436548\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/media?parent=436548"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/categories?post=436548"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.swingfish.trade\/blog\/wp-json\/wp\/v2\/tags?post=436548"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}