U.S. 20-Year Treasury Auction Clears at 5.420%, Keeping Long-Term Yields Elevated
Summary
- The U.S. Treasury’s 20-year note auction cleared at 5.420%, extending the period of elevated long-term Treasury yields.
- The $13 billion 20-year Treasury auction drew a 2.57 bid-to-cover ratio, signaling solid demand.
- Elevated long-term Treasury yields are weighing on the stock and housing markets, as well as funding conditions for companies and households.
Forecast Trend Report by Period
The U.S. Treasury’s auction of 20-year notes cleared at 5.420%, underscoring the persistence of elevated long-term borrowing costs.
Walter Bloomberg reported on September 15 that the $13 billion 20-year Treasury auction held that day stopped at 5.420%.
The bid-to-cover ratio was 2.57, indicating solid demand. Indirect bidders, which include foreign central banks and asset managers, were awarded about $6.8 billion.
With long-term Treasury yields holding at high levels, pressure continues to build on funding conditions for companies and households, as well as on the stock and housing markets.
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