US treasury auctions off $16 billion a 20 year bonds at a high yield of 2.651%

The U.S. Treasury auctioned off $16 billion of 20 year bonds.

• High yield Yield A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as A yield represents the earnings generated by an investment or security over a certain time period. Yields are typically displayed in percentage terms and are in the form of interest or dividends received from it.These figures do not include the price variations, which separates it from the total return. Consequently, a yield applies to various stated rates of return on stocks, fixed income instruments such as bonds, and other types of investment products.Yields can be calculated as a ratio or as Read this Term 2.651%
• WI level at the time of the auction 2.665%
• Tail -1.4 basis points
• Bid to cover 2.72x versus six month average of 2.41x
• Directs ( a proxy for domestic demand) 26.23% vs six month average of 18.9%
• Indirects ( a proxy for international demand) 64.39%vs six month average of 63.2%
• primary dealer's take 9.59% vs 17.9%

Auction Grade: A+

Highlights:

• Tail is negative indicative of strong demand. The average is +0.8 basis points for this issue.
• The domestic demand was well above its six month average indicative of strong demand
• International demand (indirects) was also comfortably above the six month average
• primary dealers are left with less than 10% versus normal around 18%

There is nothing wrong with the demand at the higher rates.

The 10 year yield is now down about -5.1 basis points while the 30 year is down -6.7 basis points.