Weak 20 yr auction sends yields to highs of day

I never write on the 20 yr auction because it’s sort of this low liquidity, lost child Treasury note where not many play around this maturity playground. But, in light of seeing Treasuries again getting yippy, I’ll comment today because the auction was weak and bond yields across the curve are at the highs of the day in response.

The yield of 5.047% was a touch more than 1 bp above the when issued. The bid to cover of 2.46 was under the previous 12 month average of 2.58 and the lowest since February. Dealers were left with 17% of the auction, above the one yr average of 13.5%.