The yields on US government bonds declined on Wednesday after the worst-than-expected 20-year bond placement, the first in decades.
Yields on 10-year bonds dropped by 2.6 basis points to 0.685%.
The US Treasury Department placed 20-year government bonds worth $20 billion with a yield of 1.22%. It was the first placement with this maturity since 1986.
The demand-to-supply ratio of bonds was 2.53x, with primary dealers who were obliged to purchase the entire volume for which no direct or indirect buyers were found repurchasing 24.6% of the placement.
The US Treasury has placed bonds to finance measures to support the country’s economy in the context of the coronavirus epidemic. It is expected that 20-year-old Treasuries will be sold in three months for a total amount of $54 billion.
The yield of 30-year US government bonds decreased by 3.2 basis points to 1.4037%, two-year bonds – by 1 basis point to 0.1633%.