US sells USD 16bln of 20-year bonds at high yield of 4.664%, Tails 2bps

• High Yield: 4.664% (prev. 4.846%, six-auction avg. 4.724%); WI 4.644%
• Tail: 2bps (prev. -1.0bps, six-auction avg. -0.4bps)
• Bid-to-Cover: 2.36x (prev. 2.86x, six-auction avg. 2.66x)
• Dealers: 17.6% (prev. 6.2%, six-auction avg. 10.1%)
• Directs: 27.2% (prev. 29.1%, six-auction avg. 26.9%)
• Indirects: 55.2% (prev. 64.7%, six-auction avg. 63.0%)

The recent auction of 20-year bonds saw a yield of 4.664%, which is notably higher than both the previous auction and the six-auction average, indicating weak demand and higher borrowing costs for the U.S. government. The bid-to-cover ratio declined, showing reduced interest from investors, particularly as dealer participation spiked to 17.6%, suggesting a shift in inventory risk. This outcome could pressurize rates upward and affect overall market sentiment in fixed income and broader asset classes.