“The U.S. Treasury Just Sold 30-Year Bonds at a Record-Low Yield. Demand ‘Was Amazing.’”
February 14, 2020
“The U.S. Treasury sold $19 billion of long-term bonds with a record-low yield of 2.061% on Thursday. Not only that, but investor demand was the highest for any sale of a new bond since August 2014, according to Tom Simons and Ward McCarthy, strategists at Jefferies…
“The demand for the auction was amazing considering the low coupon,” Simons and McCarthy wrote in a Thursday note. “However, yield is hard to find around the world.”
Buyers submitted $2.43 of bids for every $1 of Treasuries sold on Thursday. That left bond traders called primary dealers—a group of banks required to bid at auctions—with their second-smallest share of an auction on record, the strategists said…”