The Federal Reserve bought $3.6 billion of off-the-run 20-year bonds in Tuesday’s operation (7-20 year), the first time the November issue was eligible for purchase. In the last two 7-20-year Treasury operations the Fed purchased $5.5 billion more in 10-year Treasury equivalents than in the previous two.
The result? The yield on the 20 year Treasury rose higher than any other Treasury.
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