Twenty-Year Bond Auction Attracts Strong Demand

The Treasury Department announced the results of this month's auction of $13 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 4.632 percent and a bid-to-cover ratio of 2.78.

Last month, the Treasury sold $16 billion worth of twenty-year bonds, drawing a high yield of 4.830 percent and a bid-to-cover ratio of 2.43.

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 2.56.

On Thursday, the Treasury is due to announce the details of this month's auctions of two-year, five-year and seven-year notes.