US Treasury to Auction $16 Billion in 20-Year Notes at 5.27% Yield, Highest Since 2020
The US Treasury will auction $16 billion in 20-year notes on Wednesday, with a when-issued yield of about 5.27%. If realized, that would be the highest for the maturity since its reintroduction in 2020. The sale follows recent long-debt auctions: last week's 30-year notes fetched the highest rate in nearly two decades, and the 10-year auction saw yields at their highest since 2007. As of Friday, the 20-year yield traded near 5.25%. Short-end yields fell while long-end rose, steepening the curve, with investors pricing in higher risk premiums.
The US Treasury plans to auction $16 billion in 20-year notes on Wednesday. The when-issued yield is around 5. 27%; if the auction settles at that level, it would mark the highest for that maturity since the bond was reintroduced in 2020. The sale continues a series of long-term debt offerings,, following 30-year and 10-year auctions that cleared at multi-year high yields.
Last week, the 30-year auction produced the highest yield in nearly two decades, and the 10-year auction saw yields at their highest since 2007. As of last Friday, the 20-year Treasury yield traded around 5.25%.
Short-end yields declined while long-end yields rose in tandem, continuing to steepening the yield curve. This 20-year auction will further absorb long-term debt issuance, with market data indicating that investors have priced in a higher risk premium for long-dated bonds.