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Twenty-Year Bond Auction Attracts Above Average Demand

The Treasury Department announced the results of this month's auction of $12 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 3.820 percent and a bid-to-cover ratio of 2.65.

Last month, the Treasury sold $15 billion worth of twenty-year bonds, drawing a high yield of 3.380 percent and a bid-to-cover ratio of 2.30.

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.

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