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United States USD

United States 20-Year Bond Auction

Impact:
Low

Latest Release:

Date:
Actual:
5.047%
Forecast:
Previous/Revision:
4.81%
Period:

Next Release:

Date:
Period:
What Does It Measure?
The United States 20-Year Bond Auction measures the demand and interest of investors for 20-year government bonds issued by the U.S. Treasury. It primarily focuses on the yield investors are willing to accept and the amount of capital raised, which reflects broader economic conditions including credit risk, inflation expectations, and monetary policy.
Frequency
This auction occurs approximately every month, with the results typically announced on the last business day of the auction month.
Why Do Traders Care?
Traders closely monitor 20-Year Bond Auction results as they can influence interest rates, currency strength (particularly the USD), and overall financial market sentiment. Strong demand for bonds can lead to lower yields, favorable for equities and bonds but may signal concerns over inflation or economic growth.
What Is It Derived From?
The yield and sales figures from the auction are derived from competitive and non-competitive bids submitted by various investors, including institutional and retail investors. This process involves aggregating bids to determine the accepted rates and total amounts sold, reflecting market demand and creditworthiness.
Description
The 20-Year Bond Auction provides important insights into investor sentiment regarding future economic conditions and inflation risks. It serves as a coincident indicator, often reflecting current market conditions and influencing monetary policy decisions if results consistently demonstrate strong demand or poor absorption rates.
Additional Notes
This auction can be compared to other treasury auctions, such as those for 10-Year and 30-Year bonds, providing context for the broader yield curve. The 20-Year bond is considered a mid-to-long-range investment, and its performance may indicate shifts in market strategies, particularly in relation to interest rate expectations.
Bullish or Bearish for Currency and Stocks
Higher than expected demand: Bullish for USD, Bearish for Stocks.

Legend

High Potential Impact
This event has a strong potential to move markets significantly. If the 'Actual' value differs enough from the forecast or if the 'Previous' value is significantly revised, it signals new information that markets may rapidly adjust to.

Medium Potential Impact
This event may cause moderate market movement, especially if the 'Actual' deviates from the forecast or there's a notable revision to the 'Previous' value.

Low Potential Impact
This event is unlikely to affect market pricing unless there's an unexpected surprise or a major revision to prior data.

Surprise - Currency May Strengthen
Actual deviated from Forecast on a medium or high impact event and historically could strengthen the currency.

Surprise - Currency May Weaken
Actual deviated from Forcast on a medium or high impact event and historically could weaken the currency.

Big Surprise - Currency More Likely To Strengthen
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely strengthen the currency.

Big Surprise - Currency More Likely To Weaken
'Actual' deviated from 'Forecast' more than 75% of historical deviations on a medium or high impact event and may likely weaken the currency

Green Number Better than forecast for the currency (or previous revise better)
Red Number Worse than forecast for the currency (or previous revise better)
Hawkish Supports higher interest rates to fight inflation, strengthening the currency but weighing on stocks.
Dovish Favors lower rates to boost growth, weakening the currency but lifting stocks.
Date Time Actual Forecast Previous Surprise
5.047%
4.81%
4.81%
4.632%
4.632%
4.83%
4.83%
4.9%
4.9%
4.686%
4.686%
4.68%
4.68%
4.59%
4.59%
4.039%
4.039%
4.16%
4.16%
4.466%
4.466%
4.452%
4.452%
4.635%
4.635%
4.818%
4.818%
4.542%
4.542%
4.595%
4.595%
4.423%
4.423%
4.213%
4.213%
4.78%
4.78%
5.245%
5.245%
4.592%
4.592%
4.499%
4.499%
4.036%
4.036%
4.01%
4.01%
3.954%
3.954%
3.92%
3.92%
3.909%
3.909%
3.977%
3.977%
3.678%
3.678%
3.935%
3.935%
4.072%
4.072%
4.395%
4.395%
3.82%
3.82%
3.38%
3.38%
3.42%
3.42%
3.488%
3.488%
3.29%
3.29%
3.095%
3.095%
2.651%
2.651%
2.4%
2.4%
2.21%
2.1%
1.795%
1.795%
1.85%
1.85%
1.89%
1.89%
2.12%
2.12%
2.144%
2.286%
2.144%
2.144%
2.29%
2.29%
1.92%
1.92%
1.657%
1.657%
1.47%
1.47%
1.422%
1.422%
1.37%
1.37%
1.213%
1.213%
1.185%
1.185%
1.059%
1.059%
1.314%
1.314%
1.22%
1.22%