20-Yr Bond Announcement

By CME Group3 days ago

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Treasury bonds are sold at regularly scheduled public auctions. The competitive bids at these auctions determine the interest rate paid on each Treasury bond issue. A group of securities dealers, known as primary dealers, are authorized and obligated to submit competitive tenders at Treasury auctions. Dealers can hold the bonds, resell the bonds to their clients or trade them with other securities firms. Typically, the New York Fed approves about 20 securities firms to be primary dealers regularly and the latest list can be found here. The Treasury will announce the amount, date and time of each 20-year auction in the week prior to the auction, which will regularly be held in the third week of each month and settled on the last day of the month or the first business day thereafter. Retired in 1986, the 20-year bond was re-introduced in May 2020 to provide another long-maturing offering that would extend the duration of outstanding debt and help fund a ballooning Federal deficit.

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