The drop in prices followed a rally where yields fell as much as 4 bps on expectations of lower supply. This sentiment shift comes as BlackRock ended a bearish bet on long term bonds it held for most of the last 6 years. Traders remain wary of further intervention from Bessent following a "Treasury twist" in August, noting that the 20 year bond was only brought back in 2020 after a 34 year hiatus.
Tuesday, October 20, 2026
Story
US Treasury Bond Prices Drop on Omission of Auction Cuts
US Markets4 days ago
Long term government securities declined after a Treasury Department dealer questionnaire failed to signal expected reductions in long dated debt sales for the November refunding. Market participants had anticipated that Treasury Secretary Scott Bessent would confirm Citigroup's prediction of a $3 billion reduction per auction for both 20 year and 30 year bonds, and some traders expected the potential complete cancellation of the 20 year bond issuance.
Looking for more context or analysis?
Tilt chat provides reliable, tailored insights, alerts, and automations.