The 20 yr bond auction (first began back in May 2020) was bad. The yield of 1.92% was more than 2 bps above the when issued. The bid to cover of 2.15 was well below the average since they started of 2.40 and it is the weakest of them all by far. Direct and indirect bidders took 71% of the auction, the least of the ten 20 yr auctions leaving dealers with the most.
Yields are still down on the day after the recent jump but off their lows in response. I still expect higher yields in coming quarters.
Peter is the Chief Investment Officer at Bleakley Advisory Group and is a CNBC contributor. Each day The Boock Report provides summaries and commentary on the macro data and news that matter, with analysis of what it all means and how it fits together.