US sells 20-year bonds 4.213% vs 4.198% WI

• Prior was 4.780%
• Bid to cover 2.55 vs 2.36 prior, recent average 2.68

The 20-year has the fattest yields on the curve but it wasn’t enough as we get a 1.5 bps tail. I get the sense the market sniffed this out in the past few hours as yields moved up in a concession.

US 10s pay 3.89% and 30s pay 4.02%. The bulge in 20s reflects some issues with liquidity and some buyers like insurance companies being forced into longer duration. Still, you would think sovereigns or someone else would find a way to pick up the extra 20 bps.

It’s a tough time of year though so maybe that helps to explain it.