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2026-09-15 22:07:12
[Record-Breaking Yield on 20-Year US Treasury Auction] The upcoming auction of 20-year US Treasury bonds, scheduled for 1 p.m. New York time, is expected to set a new record for the highest auction yield since the bond market resumed issuance in 2020. A slight bear steepening sell-off in the long-term bond market has pushed yields higher. This $13 billion reissue, with a pre-issuance trading yield of approximately 5.41%, will surpass the previous record of 5.245% set in October 2023, becoming a new all-time high for this bond. Strong demand for coupon bonds at high yield levels last week is a potential positive factor for this 20-year auction. The 20-year Treasury yield reached a high of 5.44% on Tuesday, a record high since the bond market resumed issuance. Last week's auctions of 10-year and 30-year US Treasury bonds saw bid yields 1.4 basis points and 2.7 basis points lower than the issuance yields, respectively. JPMorgan strategists pointed out in a research report Monday evening that the lack of an attractive macroeconomic environment, high valuations, and insufficient technical support mean that a larger yield concession is needed to successfully absorb this auction. The latest Commitment of Traders data from the U.S. Commodity Futures Trading Commission shows that speculators hold a net short position of 200,000 contracts in traditional Treasury futures, which may trigger short covering demand.
