Stellar 20Y Auction Stops Through With Best Metrics Of 2025

Concerns arose about demand for today's 20-year bond reopening due to rising bond yields in Japan and the US. However, the auction proved successful with strong demand and the largest stop through since June 2024. The auction priced at a yield of 4.935%, lower than the previous month and the lowest since April. It stopped through the When Issued rate by 1.6bps, marking the biggest such occurrence since June 2024. The bid-to-cover ratio increased to 2.79, the highest since April 2024, surpassing the six-auction average. Indirect bidders were awarded 67.4%, consistent with recent averages. Direct bidders received 21.9%, the most since March, leaving dealers with the lowest holding since March at 10.7%. This 20-year reopening was considered a stellar auction, one of the best of the summer. Despite initial dips in 10-year yields, yields across the curve have since resumed their upward trend.