Reported 3 days ago
Recent data reveals that failed trades involving the 20-year US Treasury bonds have surged past $21 billion, the second-highest in history, reflecting a persistent shortage. This issue stems from reduced auction sizes initiated by the Treasury in 2021 due to low investor demand, leading to a higher yield compared to the riskier 30-year bonds. Analysts suggest that increasing the supply of 20-year bonds could mitigate these shortages, but it may complicate market pricing.
Source: YAHOO