Twenty-Year Bond Auction Attracts Slightly Below Average Demand
The Treasury Department announced the results of this month’s auction of $24 billion worth of twenty-year bonds on Monday, with the sale attracting slightly below average demand.
The twenty-year bond auction drew a high yield of 1.470 percent and a bid-to-cover ratio of 2.39.
Last month, the Treasury sold $27 billion worth of twenty-year bonds, drawing a high yield of 1.422 percent and a bid-to-cover ratio of 2.27.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
Since being reintroduced in May, the seven previous twenty-year bond auctions had an average bid-to-cover ratio of 2.42.