The Treasury Department recently unveiled the outcomes of its $13 billion auction of 20-year bonds, disclosing an uptake in demand that is above average. The auction drew a high yield of 4.818 percent and a bid-to-cover ratio of 2.82.
In the previous month, similar bonds worth $13 billion were auctioned, drawing a high yield of 4.542 percent and a bid-to-cover ratio of 2.79. The bid-to-cover ratio is a means of quantifying demand and it indicates the amount of bids received for each dollar's worth of securities on sale.
The last ten auctions of 20-year bonds saw an average bid-to-cover ratio of 2.63. On the agenda for Thursday, the Treasury is set to disclose the specifics of this month's auctions of 2-year, 5-year, and 7-year notes.
