By Paulo Trevisani
The U.S. Treasury on Tuesday auctioned $13 billion in 20-year bonds, with investors demanding the highest yield in four decades.
The bonds sold at a yield of 5.42%, the highest since January 1986, when it was at 9.45%. The 20-year was discontinued later that year before its reintroduction in 2020--and since that point, the highest yield until now had been 5.25% in October 2023.
Despite the elevated payout, demand indicators were on the soft side: the 2.57 bid-to-cover ratio was below the previous six-month average of 2.65, while the share acquired by the indirect-bidders group, which includes foreign investors, was also below trend, at 52.5%.
The tender results come as Treasury Secretary Scott Bessent is trying to cool down long-term yields by buying back more of the government's own debt. Earlier on Tuesday, he said in testimony before the House of Representatives that Treasury auctions have been the "most successful" in 20 years.
The 20-year yield rose to 5.418%, from 5.401% before the auction. Other maturities moved in tandem, with the 10-year rising to 5.014% from 4.996%.
Write to Paulo Trevisani at paulo.trevisani@wsj.com
(END) Dow Jones Newswires
September 15, 2026 14:24 ET (18:24 GMT)
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