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Yields Soar, Stocks Plunge After Ugly 20Y Auction Sees Biggest Tail Of 2025
While it wasn't quite as catastrophic as Japan's 20Y auction earlier this week which saw the biggest tail since 1987, moments ago the US also sold 20Y paper in what was one of the worst auctions for this tenor since its launch 5 years ago. Indeed, exactly 5 years since the first 20Year auction took place in May 2020, moments ago the US Treasury sold $16 billion in 20 Year paper in a dismal auction which sent yields spiking to session highs. The high yield was 5.047%, only the second 20Y auction to have a 5%+ yield, and only the second 20Y auction with a 5% coupon. The high yield was 24bps higher than April's 4.810% ... (full story)
