Wednesday, 20 March 2024

U.S. Treasury to auction off $13 billion of 20 year bonds at the top of the hour

by BD Banks

The US treasury is set to auction off $13 billion of 20-year bonds at the top of the hour. The six-month averages of the major components shows:

  • Tail +0.5 basis points
  • Bid to cover: 2.56x
  • Directs (a measure of domestic demand): 19.7%
  • Indirects (a measure of international demand): 66.6%
  • Dealers (they take the rest): 13.7%

The last auction last month came in at a high yield of 4.595% with a large 3.3 basis point tail and Bid to cover at a lower than average 2.39X. We will see if the issue is supported by buyers today.

Overall US yields today are lower:

  • 2-year yield 4.700%, -3.6 basis points
  • 5-year yield 4.311%, -4.4 basis points
  • 10-year yield 4.304% -3.6 basis points
  • 30 year yield 4.447%: -1.9 basis points

This article was written by Greg Michalowski at