Treasury yields rise after soft demand for 20-year auction

May 21 (Reuters) - The U.S. Treasury Department saw soft demand for a $16 billion sale of 20-year bonds on Wednesday in what was seen as a test of foreign demand for U.S. debt as concerns over the fiscal and inflation outlook mount.

The debt sold at a high yield of 5.047%, around one basis point above where it had traded before the sale. Indirect bidders, which can include governments, fund managers and insurance companies, took an above average portion of the sale at 69%, indicating that foreign demand remained solid. Overall demand was slightly below average at 2.46 times the amount of debt on offer.

Yields on the 20-year debt US20YT=RR rose after the auction to 5.087%, the highest since January.