US 20-year bonds are for sale today and the auction comes at a time when investors have been particularly bullish on duration.
US 20s
The most recent sale of 20s was at 4.46% and we will surely crack that with the on-the-run issue trading at 4.16%.
Twenty-year bonds do offer some value with 30s at 4.06% but it's not clear who will step up and fill that gap.
This is a $16 billion sale and comes after a 2.9 bps tail at the most-recent 30-year sale. But on the positive side, the past 5 sales of 20s have stopped through and by an average of 1.5 bps.
