US Treasury Auctions Off 13 Billion of 20 Year Bonds at a High Yield of 5.163%

High yield 5.163% WI level at the time of the auction 5.158%. Tail 0.5 basis points versus six month average of -0.3 basis points Bid to cover 2.64X versus average of 2.66X Directs vs average of 23.9% Indirects vs average of 65.9% Dealers vs average of 10.1% Auction

High yield 5.163% WI level at the time of the auction 5.158%.

Tail 0.5 basis points versus six month average of -0.3 basis points

Bid to cover 2.64X versus average of 2.66X Directs vs average of 23.9% Indirects vs average of 65.9% Dealers vs average of 10.1% Auction Grade: Key Components of a U.S. Treasury Auction High Yield (Stop-Out Yield): Final accepted yield. Lower than expected = Strong demand Higher than expected = Weak demand Tail (vs.

When-Issued Yield): Most watched metric. Through (negative tail) = Very strong auction Positive tail = Weak auction Bid-to-Cover Ratio: Total bids ÷ amount sold. Higher than average = Strong demand Lower than average = Weak demand Indirect Bidders: Foreign central banks and overseas investors.

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