FX.co ★ Twenty-Year Bond Auction Attracts Strong Demand

The Treasury Department announced the results of this month's auction of $16 billion worth of twenty-year bonds on Wednesday, revealing the sale attracted well above average demand.

The twenty-year bond auction drew a high yield of 2.651 percent and a bid-to-cover ratio of 2.72, while the ten previous twenty-year bond auctions had an average bid-to-cover ratio of 2.39.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

Last month, the treasury sold $19 billion worth of twenty-year bonds, drawing a high yield of 2.396 percent and a bid-to-cover ratio of 2.44.