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Twenty-Year Bond Auction Attracts Well Below Average Demand

The Treasury Department announced the results of this month's auction of $15 billion worth of twenty-year bonds on Wednesday, revealing the sale attracted well below average demand.

The twenty-year bond auction drew a high yield of 3.380 percent and a bid-to-cover ratio of 2.30.

Last month, the Treasury sold $14 billion worth of twenty-year bonds, drawing a high yield of 3.420 percent and a bid-to-cover ratio of 2.65.

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 2.54.

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

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