Treasury's $14 Billion 20-Year Bond Auction Draws Above-Average Demand, 3.488% Yield

The Treasury Department said Wednesday its auction of $14 billion in twenty-year bonds attracted above-average demand, drawing a high yield of 3.488 percent and a bid-to-cover ratio of 2.60. The ratio exceeded the 2.49 average posted across the ten previous twenty-year auctions. Last month, the Treasury sold $17 billion of twenty-year bonds at a high yield of 3.290 percent with a bid-to-cover ratio of 2.50. The bid-to-cover ratio measures demand, indicating the volume of bids received for each dollar of securities sold. The Treasury is scheduled to announce details Thursday of this month's auctions of two-year, five-year and seven-year notes.