Thirty-Year Bond Auction Attracts Below Average Demand

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

The thirty-year bond auction drew a high yield of 5.441 percent and a bid-to-cover ratio of 2.36.

Last month, the Treasury sold $22 billion worth of thirty-year bonds, drawing a high yield of 5.618 percent and a bid-to-cover ratio of 2.54.

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 2.45.

Earlier this week, the Treasury revealed this month's auction of $58 billion worth of three-year notes and $42 billion worth of ten-year notes also attracted below average demand.

The Treasury also announced the details of this month's auction of twenty-year bonds earlier on Thursday.

The Treasury said it plans to sell $15 billion worth of twenty-year bonds, with the results of the auction due to be announced next Wednesday.

Last month, the Treasury sold $13 billion worth of twenty-year bonds, attracting above average demand.