U.S. Bond Market: Treasury Bonds Rise, 20-Year Treasury Continues Issuance with Strong Demand

MaticHoleFiller · 2026-03-28T11:19:28+00:00

U.S. Treasury futures are steadily rising due to strong demand and stable oil prices, with the yield curve flattening. The yield on long-term U.S. bonds slightly declined, and the 20-year Treasury auction performed strongly. The USD swap spread continues to widen, with long-term spreads leading the gains.

MaticHoleFiller

2026-03-28 11:19:28

Abstract generation in progress

U.S. Treasury futures steadily rose during the American trading session, supported by strong demand for the $13 billion 20-year Treasury reissue and relatively stable oil prices, which closed up about 2.5% during the day. The yield curve flattened, thanks to a more pronounced bull flattening trend in UK bonds.

Just after 3 PM New York time, U.S. long-term bond yields dipped by as much as 2 basis points, with the 2-year to 10-year Treasury yield spread narrowing by about 1.5 basis points. The yield on the 10-year Treasury was around 4.2%, down 1.5 basis points during the day, while UK bonds outperformed by nearly 6 basis points for that maturity.

The U.S. Treasury’s $13 billion 20-year bond reissue had a winning yield 0.7 basis points lower than the trading levels before issuance. Auction metrics were strong, with primary dealers receiving a 9.2% allocation, down from previous levels; indirect bidders’ allocation rose to 69.25%, while direct bidders’ allocation fell to 21.6%; the bid-to-cover ratio was 2.76 times, consistent with recent averages.

During the U.S. morning session, as crude oil narrowed previous gains, European bonds rose, providing support for U.S. Treasuries. However, with Iran’s continued attacks on energy infrastructure in the Middle East, WTI crude futures still closed higher during the day.

The dollar swap spreads continued to widen strongly on Monday, with long-term swap spreads leading the charge. On Monday, the 30-year dollar swap spread rose by nearly 4 basis points, marking the largest single-day increase since April.

As of 3:25 PM New York time, the 2-year Treasury yield was at 3.6673%;

The 5-year Treasury yield was at 3.7824%;

The 10-year Treasury yield was at 4.1965%;

The 30-year Treasury yield was at 4.8472%;

The spread between the 5-year and 30-year Treasury yields was at 106.31 basis points;

The spread between the 2-year and 10-year Treasury yields was at 52.71 basis points.

Massive news and precise interpretation can be found in the Sina Finance APP

Editor: Ding Wenwu

View Original

This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.