U.S. Treasury Auctions 20-Year Bonds at Highest Yield Since 1986

The U.S. Treasury auctioned $13 billion in 20-year bonds, with investors demanding a yield of 5.42%, the highest recorded since January 1986. Demand indicators for the auction were on the soft side, with a bid-to-cover ratio of 2.57, falling below the previous six-month average of 2.65. This development occurs as Treasury Secretary Scott Bessent is reportedly working to cool long-term yields through government debt buybacks.