A $13 billion issuance of 20 year government debt ended on Sept. 15 with a high yield of 5.42% and a bid-to-cover ratio of 2.57. Indirect bidders took 52.47% of the sale, while direct bidders and primary dealers claimed 30.68% and 16.85% respectively, marking the highest yield ever recorded for this maturity.

The auction's 2.0 basis point tail above the 5.40% when-issued yield was the largest since December 2024. This result coincided with the 20 year Treasury yield reaching 5.443% on Sept. 15, a level not seen in over 20 years, and represented an increase from the previous auction's high yield of 5.204%.