Twenty-Year Bond Auction Attracts Above Average Demand

(RTTNews) - The Treasury Department announced the results of this month's auction of $13 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 4.817 percent and a bid-to-cover ratio of 2.76.

Last month, the Treasury sold $16 billion worth of twenty-year bonds, drawing a high yield of 4.664 percent and a bid-to-cover ratio of 2.36.

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 2.62.

Last week, the Treasury announced the results of this month's auctions of $58 billion worth of three-year notes, $39 billion worth of ten-year notes and $22 billion worth of thirty-year bonds.

The three-year and ten-year note auctions attracted below average demand, while the thirty-year bond auction attracted above average demand.

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