The auction saw strong indirect demand at 67.67%, offsetting a lower bid-to-cover ratio of 2.55x.
The US Treasury sold $16 billion of 20-year bonds at a high yield of 5.122%, matching the when-issued level with no tail. The auction drew a bid-to-cover ratio of 2.55x, slightly below the six-month average of 2.62x.
Indirect bidders, often representing international demand, accounted for 67.67% of the auction, above the six-month average of 63.5%. Direct bidders took 22.94%, while dealers absorbed 9.39%, below their average share of 11.1%.
The auction was graded C+ by analysts, reflecting mixed demand metrics but strong foreign participation.