US Sells $22 billion in 20-year bonds at a high yield of 1.37%

BY Reuters | TREASURY | 10/21/20 01:08 PM EDT

Oct 21 (Reuters) - The U.S. Treasury Department sold $22 billion in 20-year bonds on Wednesday at a high yield of 1.37%. For further details, see:

https://www.treasurydirect.gov/instit/annceresult/press/preanre/2020/R_20201021_3.pdf

Term and Type of Security 19-Year 10-Month Bond CUSIP Number 912810SQ2 Series Bonds of August 2040 Interest Rate 1-1/8% High Yield 1 1.370% Allotted at High 96.29% Price 95.765607 Accrued Interest per $1,000 $2.41508 Median Yield 2 1.325% Low Yield 3 0.080% Issue Date November 02, 2020 Maturity Date August 15, 2040 Original Issue Date August 31, 2020 Dated Date August 15, 2020

(Reporting By Karen Brettell Editing by Chris Reese)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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