Yields declined across the maturity spectrum on Tuesday, with the market extending a rally sparked by weak US retail sales data earlier in the session. The move was led by the two-year yield, which at one point fell nearly 8 basis points below 4.69% — short of last week’s low 4.65%.
A $13 billion auction of 20-year Treasuries, meanwhile, came in well below its pre-sale indicative level, a sign of stronger-than-expected demand.
While the 20-year auction had been seen in the market as a test for investor appetite at lower yield levels, it drew a yield of 4.452% versus a pre-auction yield of around 4.48%. That solid result followed last week’s sales of 10-, and 30-year Treasuries that arrived at lower yields than indicated at the 1 p.m. New York time deadlines.
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