First Auction of 20-year Treasury Bonds Since 1986 Has High Yield Of 1.220% (Slightly Higher Than Savings Series I Bonds At 1.06%, But Lower Than a 1Y CD)

The US Treasury, desperate for revenue with the COVID-19 shutdown crushing the economy and tax receipts, has reintroduced something that hasn’t been seen since 1986: the 20-year US Treasury bond.

Today’s auction led to a 1.220% high yield rate, only slightly higher than Series I savings bonds.

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And around 1.35% for a bank certificate of deposit (CD).

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The Martin Luther King Series I savings bond at 1.06% composite rate (the composite rate for Series I Savings Bonds is a combination of a fixed rate, which applies for the 30-year life of the bond, and the semiannual inflation rate).

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