The Treasury Department on Tuesday announced the results of this month’s auction of $24 billion worth of twenty-year bonds, revealing the sale attracted modestly above average demand.
The twenty-year bond auction drew a high yield of 2.120 percent and a bid-to-cover ratio of 2.40.
Last month, the Treasury sold $27 billion worth of twenty-year bonds, drawing a high yield of 2.286 percent and a bid-to-cover ratio of 2.24.
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 2.33.
The material has been provided by InstaForex Company – www.instaforex.com