The U.S. Treasury sold $16 billion in 20-year bonds on Wednesday, but demand was weak and investors feared Congress was debating a tax and spending bill that is expected to worsen the fiscal outlook and increase the U.S. debt burden, Internet reported. The yield on treasury bonds at this auction was as high as 5.047%, about one basis point higher than the pre-auction trading level. Indirect bidders (including governments, fund managers and insurance companies) purchased 69% of government bonds, above average, indicating that foreign demand remains strong. Overall demand is slightly below average, at just 2.46 times debt for sale, the lowest level since February 2023. The yield on the 20-year Treasury note rose to 5.127% after the auction, the highest level since November 2023. The lukewarm response to the auction led to a sell-off in stocks and the U.S. dollar, while Treasury yields rose, signaling growing investor concerns about the country's swelling debt, which could spur bond market wardens, who want more fiscal restraint from Washington.