The US Treasury successfully auctioned 20-year bonds worth approximately $13 billion. The bid-to-cover ratio reached 2.57, showing an increase from the previous figure of 2.53.
This result exceeds the historical average of 2.44 and falls within the typical range of 2.15 to 2.64. A ratio above 2.5 is generally viewed by market participants as an indicator of healthy demand.
Indirect bidders, including foreign central banks and large institutions, typically account for 60-70% of total bids in these auctions. The Treasury reintroduced the 20-year bond in May 2020.
The government also utilizes buyback programs to improve liquidity by repurchasing older bonds. Strong auction results often support secondary market prices and help maintain lower yields for investors.
