(Bloomberg) — Investors flocked to Treasury yields near the highest levels of the year on Wednesday, including in an auction of 20-year bonds.
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The rally trimmed yields across the market by as much as 10 basis points, suggesting that levels reached this week offer adequate compensation for the risk that growth and inflation trends will forestall Federal Reserve interest-rate cuts.
The 20-year bond auction drew a yield of 4.818%, more than two basis points lower than the bonds’ yield in pre-auction trading shortly before the 1 p.m. New York time bidding deadline — a sign that demand exceeded dealers’ expectations. It was still the second-highest 20-year bond auction result since the tenor was reintroduced in 2020.
“Yields have risen a lot,” said Angelo Manolatos, an interest-rate strategist at Wells Fargo Securities LLC. “Bonds are clearly in demand today, but I don’t think this is a catalyst for a…
