US 20s, daily
- Prior was 4.592%
- Bid to cover 2.259 vs 2.74 prior
A 1.2 bps stop through is a welcome surprise after days of puking in the bond market. Twentys are trading at 5.23% afterwards. Perhaps it’s not a huge surprise with 20s yielding significantly more than 10s or 30s, teeing up an opportunity for anyone who needs the duration.
The US dollar has softened following the sale.
The bigger question is whether this was more of a curve trade than outright demand for bonds.