US auctioned US $16 billion of 20-year treasury bond bonds to sell at a yield of more than 5%

According to a report by Golden Finance, the US Treasury Department sold $16 billion worth of 20-year bonds on Wednesday, but weak demand has raised concerns among investors that the US Congress is debating a tax and spending bill that is expected to worsen the fiscal outlook and increase the country's debt burden. The yield of treasury bond in this auction was as high as 5.047%, about one basis point higher than the trading level before the auction. Indirect bidders (including the government, fund management companies and insurance companies) bought 69% of treasury bond this time, higher than the average level, indicating that foreign demand is still strong. The overall demand is slightly lower than the average level, only 2.46 times the debt for sale, which is the lowest level since February 2023. The yield of the 20-year treasury bond rose to 5.127% after the auction, the highest level since November 2023. The cold response to the auction led to the sell-off of the stock market and the US dollar, while the yield of US treasury bond bonds rose, which indicates that investors are more worried about the debt inflation in the country, which may stimulate the vigilance of the bond market, who hope that Washington will take more fiscal restraint measures. Previously, Moody's downgraded the sovereign rating of the United States from the highest level "Aaa" on Friday, marking another downgrade after previous downgrades by Fitch Ratings and Standard&Poor's.