The U.S. Treasury will optional $16 million of 20 year bonds at 1 PM ET. The 20-year bond has a higher yield than the more liquid 30-year bond (currently at 4.461%) and is also higher than the 10-year yield at 4.3009%.

Auction History of the major components and their 6-month averages shows:

  • High Yield: previous auction at 4.423%.
  • Tail: Previous auction tail at 0.8 bps, 6-auction average at 0.1 bps.
  • Bid-to-Cover Ratio: Previous auction at 2.53x, 6-auction average at 2.59x.
  • Allocation:
    • Dealers: Previous 17.3%, 6-auction average 12.1%.
    • Directs (a measure of domestic demand): Previous 20.5%, 6-auction average 19.8%.
    • Indirects (a measure of international demand), Previous 62.2%, 6-auction average 68.2%.