The Treasury Department released the outcomes of this month’s auction of $16 billion in twenty-year bonds on Wednesday, indicating below-average demand for the offering.
The auction resulted in a high yield of 4.635% and a bid-to-cover ratio of 2.51.
In contrast, last month's auction saw the Treasury issuing $13 billion in twenty-year bonds, achieving a high yield of 4.818% and a bid-to-cover ratio of 2.82.
For context, the bid-to-cover ratio—a key indicator of investor demand—reflects the number of bids for every dollar of securities offered.
Over the past ten auctions of twenty-year bonds, the average bid-to-cover ratio stood at 2.62.
Looking ahead, the Treasury is set to announce the specifics of this month’s auctions for two-year, five-year, and seven-year notes on Thursday.
