The Treasury Department recently disclosed particulars related to the upcoming auction of 20-year bonds scheduled for this month.
Projections indicate that the treasury aims to sell 20-year bonds valued at $16 billion. The outcome of the auction will be made public on Wednesday, February 21.
In the previous month, the Treasury auctioned off 20-year bonds amounting to $13 billion, which showed less than average interest.
The previous auction quoted a high yield of 4.423 percent and a bid-to-cover ratio of 2.53. Over the last ten instances of 20-year bond auctions, the average bid-to-cover ratio was 2.63.
The bid-to-cover ratio serves as an estimate of demand, signifying the sum of bids procured for each dollar's worth of securities that are on sale.
