US sells 20-year bonds at 5.245% vs 5.257% WI

<ul><li>Prior was 4.592%</li><li>Bid to cover 2.259 vs 2.74 prior</li></ul><p>A 1.2 bps stop through is a welcome surprise after days of puking in the bond market. Twentys are trading at 5.23% afterwards. Perhaps it's not a huge surprise with 20s yielding significantly more than 10s or 30s, teeing up an opportunity for anyone who needs the duration.</p><p>The US dollar has softened following the sale.</p><p>The bigger question is whether this was more of a curve trade than outright demand for bonds.</p>

This article was written by Adam Button at www.forexlive.com.