Thirty-Year Bond Auction Attracts Above Average Demand

(RTTNews) - The Treasury Department finished off this week's series of announcements of the results of its long-term securities auctions on Wednesday, revealing this month's auction of $22 billion worth of thirty-year bonds attracted above average demand.

The thirty-year bond auction drew a high yield of 4.331 percent and a bid-to-cover ratio of 2.47.

Last month, the Treasury sold $25 billion worth of thirty-year bonds, drawing a high yield of 4.360 percent and a bid-to-cover ratio of 2.40.

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 $56 billion worth of three-year notes attracted below average demand, while this month's auction of $39 billion worth of ten-year notes attracted average demand.

The Treasury is scheduled to announce the details of this month's auction of twenty-year bonds at 11 am ET on Thursday.