There was solid bid-side demand for today’s auction of $22 billion in 20Y (technically a 19-year 10-month reopening) bonds.

The high yield of 1.370% stopped through the When Issued 1.371% by 0.1bps, well above last month’s 1.213% and the highest yield for the tenor since the 20Y auction was brought back after it was phased out in 1986.

Perhaps it was the “solid” yield that sparked investor interest, but whatever the reason, the stats on the bond were impressive: the Bid to Cover rose from 2.39 to 2.43, the highest since June. The internals were also quite solid with Indirects taking down 62.9%, the most since July, and above last month’s 60.7%. And with Directs taking 15.6%, in line with last month’s 15.3%, it meant Dealers held on to 21.5% of the auction, down from 24.0% last month and the lowest since July.

Overall, a solid auction if hardly exceptional with most metrics coming in line with recent prints.

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