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The US treasury will auction off $13 billion of 20 year bonds at the top of the hour. The auction results will be compared to the six-month averages of the major components from the auction. Those six-month components show:
The current 20-year yield is at 4.577% up 1.8 basis points on the day.
A month ago, the auction went off at a high yield of 4.040%, but it was not received well with a tail of +2.0 basis points, a bid to cover of 2.51x lower than the 6-month average, and Dealers taking a large 18.62% (vs 6 month average of 10.29%).
Needless to say, yields are sharply higher since that auction. The low intraday yield was reached on September 17 at 3.974%.
This article was written by Greg Michalowski at www.forexlive.com.
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