US Treasury Sells $13 Billion in 20-Year Bonds

The United States Department of the Treasury auctioned $13 billion in twenty-year bonds on October 21, 2026. The sale concluded with a high yield of 5.469 percent, a record high and a slight increase from the 5.420 percent yield recorded during the previous month's sale of the same security.

Demand for the bonds was above average, with a bid-to-cover ratio of 2.73, the highest since June and exceeding the ten-auction average of 2.64. However, the auction experienced a tail of 0.9 basis points over the When Issued yield, marking the fourth consecutive time this has occurred.

Participation data revealed a shift in buyer composition. Indirect bidders took 58.2% of the sale, indicating continued weakness in foreign demand. To compensate, direct bidders surged to a record 31.6%.

Following these results, market speculation has emerged regarding the future of the security. Some analysts suggest that Scott Bessent may announce the discontinuation of 20-year bond auctions during the next Treasury Refunding Announcement in two weeks. The Treasury Department is scheduled to release results for auctions of two-year, five-year, and seven-year notes on Thursday.