Every time I see a social media post declaring that global demand for US Treasuries (US Government Debt) is dead, I wonder why there’s no references or data provided to back up those claims.
But here’s why…
Foreign demand for US 10-year, 20-year, and 30-year bonds is at all time highs as evidenced by the weekly UST Bond Auction data.
Case in point, here’s the results in today’s off-the-charts 20-year bond auction.
The U.S. Treasury had a highly successful auction for 20-year bonds, selling $13 billion worth today.
The demand for these bonds was exceptionally high, with the interest rate (yield) dropping to 4.452%, lower than last month’s 4.635% and the lowest since January.
The auction had a strong bid-to-cover ratio of 2.74, meaning there were many bids compared to the amount of bonds available.
Foreign investors (Indirects) bought 77.9% of the bonds, almost a record high, while Direct bidders (USA investors) took 16.3%, leaving dealers with only 5.3%, the lowest ever.
Source Data: https://www.zerohedge.com/markets/record-demand-stellar-20y-auction