The United States auctioned $16 billion of 20-year Treasury bonds, selling at a yield of over 5%.

The U.S. Treasury sold $16 billion of 20-year bonds at a yield of more than 5% The U.S. Treasury sold $16 billion of 20-year bonds on Wednesday, but demand was weak as investors worried that the U.S. Congress was arguing over a tax and spending bill that is expected to worsen the fiscal outlook and increase the U.S. debt burden. The yield on the government bonds at this auction reached 5.047%, approximately one basis point higher than the trading level prior to the auction. Indirect bidders (including governments, fund management companies, and insurance companies) purchased 69% of the government bonds this time, which is above the average level, indicating that foreign demand remains strong. Overall demand was slightly below the average level, at only 2.46 times the amount of debt for sale, marking the lowest level since February 2023. The 20-year Treasury yield rose to 5.127% after the auction, the highest level since November 2023. The auction was met with a lukewarm response, leading to a sell-off in the stock market and the dollar, while U.S. Treasury yields rose, indicating that investors are increasingly concerned about the country’s rising debt, which could prompt bond market watchers to seek more fiscal restraint from Washington.