The U.S. Treasury will auction $16 billion of 20-year bonds on Wednesday, with investors expected to demand a yield near 5.28%, the highest since the tenor was introduced six years ago. The auction comes as the U.S. budget deficit has reached nearly $1.8 trillion this fiscal year and the national debt is expected to soon breach $40 trillion. Last week's 30-year auction yielded 5.216%, the highest in a quarter-century, while the 30-year Treasury yield briefly hit 5.327% on Tuesday, its highest since June 2007. The Treasury announced it will at least double debt buybacks targeting 10- to 30-year maturities, which helped ease yields on Wednesday. Analysts cited fiscal deficit concerns as the dominant driver of the long-end selloff, with global yields also rising due to deficits and higher energy prices from the Iran conflict.
Compass IncAuction yields expected near 5.28%, highest since tenor introduced, reflecting fiscal deficit concerns and global bond rout
30-year yield hit 5.327%, highest since 2007, driven by fiscal deficit concerns and global yields rising
