At 01:00 Beijing time on April 22, the U.S. Treasury conducted a 20-year Treasury bond tender sale, the scale of the tender sale was $24 billion.
According to subsequent data, the bid yield was 2.144%, while the bid multiple was 2.42. In last month’s sale, the bid yield was 2.290%, while the bid multiple was 2.51.
According to statistics, the average bid multiple for the last six months of the sale was 2.34.
In terms of allocation ratio, direct buyers (direct buyers), including the Federal Reserve and other U.S. federal government entities, received 20.2%, the highest value since the 20-year U.S. debt was issued again in May last year after 30 years. The proportion of indirect buyers (indirect buyers), including foreign central banks, was 58.7%, down nearly three percentage points from last month, and also below the recent average of 59.7%. As for the obligation to prevent abortive auction of primary dealers (Dealer) was allocated 21.1%, the lowest value since May last year.
Overall, the bid multiple for this tender sale was above average, the yield received was 0.9 basis points below the pre-offer yield, and the percentage of dealers receiving bids was below normal, signaling good external demand.
In its analysis following the announcement of the bid results, financial blog Zerohedge said
Overall, the performance of today’s U.S. bond tender sale was relatively solid and significantly stronger than the disaster scenario in March, when the U.S. bond market had become chaotic after the extremely bad 7-year Treasury tender sale in late February that led to yield turmoil.
According to the arrangement, the U.S. Treasury will conduct the tender sale of 2-year and 5-year Treasuries next Monday, while the tender sale of 7-year Treasuries will be conducted next Tuesday.
In terms of market reaction, the 20-year U.S. bond yield had weakened about 1.4 basis points after the data release and set a new daily low of 2.1243%, but then stabilized to 2.151% at press time; the 10-year U.S. bond yield remained between 1.560% and 1.580% at 1.564% at press time. The three major U.S. stock indexes did not trend significantly after the results were announced, but all maintained gains during the day. As of press time, the Dow was up 0.73%, the S&P was up 0.63% and the Nasdaq was up 0.42%.
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