U.S. Debt Demand Defies Gravity: 20-Year Bond Auction Shows Unshakable Appetite

Wall Street''s thirst for Treasury debt just won''t quit—even as the fiscal taps keep flowing.

The yield hunger games continue

Investors piled into the 20-year bond auction like it was a Black Friday sale at the Federal Reserve. The market''s addiction to government paper? Still going strong in 2025.

Debt dealers keep stacking

No matter how many trillions Uncle Sam prints, bond buyers keep lining up—proving once again that in finance, the greater fool theory isn''t dead, it''s just wearing a Treasury pin.

Another day, another dollar... borrowed at your grandchildren''s expense.

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Furthermore, the bid-cover ratio was 2.68, up from 2.46. This ratio represents the dollar amount of bids received compared to the dollar amount of bonds sold, with a higher figure implying greater demand.

A Lower High Yield could Signal Falling Inflation

Direct bidders, a proxy for domestic buyers, totaled 19.9% of the auction, up from 14.1%. Indirect bidders, a proxy for foreign buyers, totaled 66.7%, down from 69%.

With a lower high yield, investors could be expecting lower inflation in the future. That could signal a positive for the stock market, as it could also influence the Fed to lower the federal funds rate. With a lower rate, both consumers and companies are able to borrow with lower costs, driving spending and corporate growth in the process.

The Fed will make the next rate decision on Wednesday, although traders have priced in 99.8% odds that the rate remains unchanged, according to the CME FedWatch tool.

Head over to TipRanks’ Economic Indicators Dashboard to view the federal funds rate and other key economic metrics.