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Twenty-Year Bond Auction Attracts Below Average Demand

The Treasury Department on Wednesday announced the results of this month's auction of $27 billion worth of twenty-year bonds, revealing the sale attracted below average demand.

The twenty-year bond auction drew a high yield of 1.422 percent and a bid-to-cover ratio of 2.27.

Last month, the Treasury sold $22 billion worth of twenty-year bonds, drawing a high yield of 1.370 percent and a bid-to-cover ratio of 2.43.

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 six previous twenty-year bond auctions had an average bid-to-cover ratio of 2.45.

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