Twenty-Year Bond Auction Attracts Strong Demand

(RTTNews) - The Treasury Department on Tuesday announced the results of this month's auction of $20 billion worth of twenty-year bonds, revealing the sale attracted well above average demand.

The twenty-year bond auction drew a high yield of 1.942 percent and a bid-to-cover ratio of 2.59.

Last month, the Treasury sold $23 billion worth of twenty-year bonds, drawing a high yield of 2.065 percent and a bid-to-cover ratio of 2.34.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

The ten previous twenty-year bond auctions had an average bid-to-cover ratio of 2.34.

On Thursday, the Treasury is scheduled to announce the details of this month's auctions of two-year, five-year and seven-year notes.