-
Traders Get First Glimpse of What a US 20-Year Treasury Might Yield
The U.S. Treasury’s new 20-year bond is headed for its first auction on May 20. However, according to custom, the first transactions were recorded Thursday after the government confirmed the auction’s $20 billion size, and those trades imply a yield of about 1.09%. Because the bond’s coupon rate will be determined by the auction yield, it doesn’t have a price yet, but traders can buy and sell it in the when-issued, or WI, market. WI trading involves expressing a pending issue’s yield relative to the that of the closest existing issue. Complicating matters with this auction, there is no existing 20-year ... (full story)