Twenty-Year Bond Auction Attracts Modestly Below 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 modestly below average demand.

The twenty-year bond auction drew a high yield of 5.420 percent and a bid-to-cover ratio of 2.57.

Last month, the Treasury sold $16 billion worth of twenty-year bonds, drawing a high yield of 5.204 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 ten previous twenty-year bond auctions had an average bid-to-cover ratio of 2.62.

Last week, the Treasury revealed 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 all attracted above average demand.

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