The United States auctioned $16 billion of 20-year Treasury bonds, selling at a yield of over 5%.

[The United States auctions $16 billion of 20-year Treasury bonds, sold at over 5% yield] The U.S. Treasury sold $16 billion of 20-year bonds on Wednesday, but demand was weak as investors worried that Congress is debating a tax and spending bill, which is expected to worsen the fiscal outlook and thereby increase the U.S. debt burden. The yield on the national debt in this auction reached 5.047%, which is about one basis point higher than the trading level before the auction. Indirect bidders (including governments, fund management companies, and insurance companies) purchased 69% of the national debt this time, which is above the average level, indicating that foreign demand remains strong. Overall demand was slightly below the average level, at only 2.46 times the debt available for sale, the lowest level since February 2023. The 20-year Treasury yield rose to 5.127% after the auction, the highest level since November 2023. The auction received a lukewarm response, leading to a sell-off in the stock market and the dollar, while U.S. Treasury yields rose, indicating heightened investor concerns about the country's growing debt, which could prompt bond market watchers to hope for more fiscal restraint from Washington.