The Treasury Department on Wednesday announced the results of this month’s auction of $24 billion worth of twenty-year bonds, with the sale attracting below average demand.
The twenty-year bond auction drew a high yield of 2.100 percent and a bid-to-cover ratio of 2.25.
Last month, the Treasury also sold $24 billion worth of twenty-year bonds, drawing a high yield of 1.795 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 2.35.