“I think the 20-year should do fine. Obviously, we haven’t seen one in a little bit of time. There’s always is a little bit of uncertainty around the unknown in general,” said Gregory Faranello, head of U.S. rates at AmeriVet Securities. On a when-issued basis, the 20-year was yielding 1.21% Tuesday. Yields move opposite price, and its yield is about 50 basis points above the 10-year, at 0.70% Tuesday. The 30-year bond was at 1.42% Tuesday. “If you look at it from a macro perspective, relative to a lot of the G7 rates around the world, even if you look at the 30-year, it is still offering a very attractive yield level,” said Faranello. “Relative to the 10-year it looks attractive as a yield pickup.” Michael Schumacher, director rates at Wells Fargo said he expects the new issue will be met with good demand. The 20-year should appeal to foreign investors and also to pension funds and insurers, who look for longer duration holdings to match their liabilities.
(Read more: CNBC – Bonds)
