Thirty-Year Bond Auction Attracts Average Demand

(RTTNews) - Finishing off this week's series of announcements of the results of its long-term securities auctions, the Treasury Department revealed on Thursday that this month's auction of $25 billion worth of thirty-year bonds attracted average demand.

The thirty-year bond auction drew a high yield of 4.360 percent and a bid-to-cover ratio of 2.40.

Last month, the Treasury sold $21 billion worth of thirty-year bonds, drawing a high yield of 4.229 percent and a bid-to-cover ratio of 2.37.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

The ten previous thirty-year bond auctions had an average bid-to-cover ratio of 2.39.

Earlier this week, the Treasury revealed this month's auction of $54 billion worth of three-year notes attracted below average demand, while this month's auction of $42 billion worth of ten-year notes attracted above average demand.