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

The Treasury Department released the results of its recent auction of $13 billion in twenty-year bonds on Wednesday, indicating that the demand was approximately average. The auction saw a high yield of 4.590 percent and achieved a bid-to-cover ratio of 2.59. In the previous month, the Treasury also auctioned $13 billion in twenty-year bonds, which resulted in a high yield of 4.039 percent and a bid-to-cover ratio of 2.51. The bid-to-cover ratio is an indicator of demand, showing the number of bids received for each dollar of securities available for sale. Historically, the last ten auctions for twenty-year bonds have maintained an average bid-to-cover ratio of 2.61. Additionally, on Thursday, the Treasury plans to announce the specifics of this month's auctions of two-year, five-year, and seven-year notes.