U.S. 10-year Treasury yield falls to 4.15%, lowest level in four months
The yield on the U.S. 10-year Treasury note fell to 4.15 percent, the lowest level in four months. In addition, the U.S. Treasury renewed its $13 billion offering of 20-year Treasuries at a winning yield of 4.466%, compared to the pre-issue trading level of 4.467% at the 1:00 p.m. New York time bidding deadline. Long-term Treasuries strengthened slightly after the bid results were announced, and 20-year Treasuries moved slightly higher on the day. The flattening trend in the yield curve remained unchanged, with the 2s20s yield spread narrowing 3.5 basis points on the day to near its intraday low. Primary dealers were allocated 8.5%, up from the previous month's record low; indirect bidders were allocated 77.2%, while direct bidders were allocated 14.3%; and bid multiples were 2.68x, compared to an average of 2.67x over the past six renewals.
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