US treasury sells $13B of 20 yr bonds at a excessive yield of four.686%

• Excessive yield four.686%
• WI stage on the time of the public sale: four.671%

Particulars

• Tail: 1.5 bps vs 6-month common zero.6bps
• Bid-to-Cowl: 2.50X vs 6-month common 2.57x
• Sellers: 17.9% vs 6-month common 13.three%
• Directs ( a measure of home demand): 20.1% vs 6-month common 15.three%
• Indirects (a measure of worldwide demand): 62.zero% vs 6-month common 71.four%

Public sale Grade: D-

The public sale had a constructive tail of 1.5 bps which is comfortably above the typical. The Bid to cowl was decrease than common with the sellers taking greater than the typical. The worldwide demand was week at solely 62% however the home demand was sturdy.

General, a beneath common public sale. So not a C and with the worldwide demand very week, I give it a grade of D-

Notice the 20 yr isn’t a subject that’s in excessive demand simply usually.

This text was written by Emma Wang at www.ubaidahsan.com.



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