Twenty-Year Bond Auction Attracts Above Average Demand
The Treasury Department announced the results of this month’s auction of $24 billion worth of twenty-year bonds on Tuesday, revealing the sale attracted above average demand.
The twenty-year bond auction drew a high yield of 2.290 percent and a bid-to-cover ratio of 2.51.
Last month, the Treasury sold $27 billion worth of twenty-year bonds, drawing a high yield of 1.920 percent and a bid-to-cover ratio of 2.15.
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 last May, the ten previous twenty-year bond auctions had an average bid-to-cover ratio of 2.38.