U.S. Treasury Sells $16B 20-Year Bond At 4.160% High Yield; Bid-To-Cover Ratio 2.54, Primary Dealers Take 9.72%, Directs 19.27%, Indirects 71%
Portfolio Pulse from Benzinga Newsdesk
The U.S. Treasury has successfully sold $16 billion in 20-year bonds at a high yield of 4.160%. The auction saw a bid-to-cover ratio of 2.54, with primary dealers taking 9.72%, directs 19.27%, and indirects 71%.
August 21, 2024 | 5:03 pm
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NEGATIVE IMPACT
The high yield on 20-year U.S. Treasury bonds may influence SPY, as higher bond yields can make equities less attractive, potentially leading to a decrease in SPY's price.
SPY is an ETF that tracks the S&P 500. Higher bond yields can lead investors to shift from equities to bonds, as bonds become more attractive. This could result in a decrease in SPY's price.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
The sale of 20-year U.S. Treasury bonds at a high yield of 4.160% could impact TLT, which tracks long-term Treasury bonds. The high yield may lead to a decrease in TLT's price as bond yields and prices move inversely.
TLT is an ETF that tracks long-term U.S. Treasury bonds. The high yield of 4.160% on the newly issued 20-year bonds suggests that bond prices may decrease, as yields and prices are inversely related. This could negatively impact TLT's price.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80