Wednesday’s $13 billion auction of 20-year Treasury bonds produced below-average bidding by nondealers and a tail of 1.5 basis points, in a sign of weaker demand.
Nondealer bidding came in at 85.5% versus an 88.6% reopening-month average, according to BMO Capital Markets strategist Vail Hartman. Hartman described the auction’s results as “soft.”
Soon after the results came in, yields on 6-month through 30-year U.S. government debt remained higher on the day. Meanwhile, all three major stock indexes remained lower.
