After reporting the results of this month’s auctions of three-year and ten-year notes and thirty-year bonds earlier this week, the Treasury Department on Thursday announced the details of this month’s auction of twenty-year bonds.
The Treasury revealed plans to sell $24 billion worth of twenty-year bonds, with the results of the auction set to be announced next Wednesday.
Last month, the Treasury also sold $24 billion worth of twenty-year bonds, drawing a high yield of 2.120 percent and a bid-to-cover ratio of 2.40. The ten previous twenty-year bond auctions had an average bid-to-cover ratio of 2.33.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
Earlier this week, the Treasury revealed this month’s auctions of $58 billion worth of three-year notes and $38 billion worth of ten-year notes both attracted average demand, while the auction of $24 billion worth of thirty-year bonds attracted below average demand.