The Treasury Department announced the results of this month’s auction of $16 billion worth of twenty-year bonds on Monday, revealing the sale attracted below average demand.
The twenty-year bond auction drew a high yield of 4.780 percent and a bid-to-cover ratio of 2.58.
Last month, the Treasury sold $13 billion worth of twenty-year bonds, drawing a high yield of 5.245 percent and a bid-to-cover ratio of 2.59.
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 2.66.
On Wednesday, the Treasury is scheduled to announce the details of this month’s auctions of two-year, five-year and seven-year notes.