U.S. auctions $16 billion 20-year Treasury note, sells at more than 5% yield

The US Treasury sold $16 billion in 20-year bonds on Wednesday, but demand was weak and investors were concerned that Congress was debating a tax and spending bill that is expected to worsen the fiscal outlook, adding to the nation's debt burden.
Yields were as high as 5.047 per cent, about a basis point higher than pre-auction trading levels. Indirect bidders - including governments, fund managers and insurers - bought 69 per cent of the bonds, above average, in a sign that foreign demand remains strong. Overall demand was slightly below average, at 2.46 times the amount of debt on sale, the lowest level since February 2023.
The yield on the 20-year Treasury note rose to 5.127% after the auction, the highest level since November 2023.
The lukewarm response to the auction led to a sell-off in stocks and the dollar, while U.S. Treasury yields rose, indicating heightened investor concerns about the country's ballooning debt, which could spur vigilantes in the bond market who want more fiscal restraint from Washington.