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Treasury Auctions $17 Billion Worth Of Twenty-Year Bonds

After selling twenty-year bonds for the first time since 1986 last month, the Treasury Department on Wednesday announced the results of this month's auction of $17 billion worth of twenty-year bonds.

The twenty-year bond auction drew a high yield of 1.314 percent and a bid-to-cover ratio of 2.63.

Last month, the Treasury sold $20 billion worth of twenty-year bonds, drawing a high yield of 1.220 percent and a bid-to-cover ratio of 2.53.

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 reintroduction of the twenty-year bond comes as the government seeks to the extend the time it has to pay off its record debt as deficits skyrocket due in part to the coronavirus crisis.

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