The U.S. Treasury Department’s winning bid for the continued issuance of US$13 billion 20-year Treasury bonds hit a record high of 4.592%, and the market’s pre-issuance trading level when bidding closed at 1 p.m. Eastern Time was at 4.595%.
A round of selling ahead of the bid deadline pushed yields slightly higher. After the bidding results were announced, the market reaction was minimal, and the 20-year Treasury bond yield still increased by about 2 basis points during the day.
The allocation ratio of primary dealers was 9.3%, which was lower than the previous time; the allocation ratio of direct bidders jumped to 25.4%, and the allocation ratio of indirect bidders dropped to 65.4%.
The bid multiple was 2.74 times, and the average multiple of the previous six renewals was 2.71 times.