Thirty-Year Bond Auction Attracts Average Demand

(RTTNews) - Finishing off this week's announcements of the results of its long-term securities auctions, the Treasury Department revealed Thursday that its auction of $19 billion worth of thirty-year bonds attracted average demand.

The thirty-year bond auction drew a high yield of 2.430 percent and a bid-to-cover ratio of 2.23.

Last month, the Treasury sold $16 billion worth of thirty-year bonds, drawing a high yield of 2.170 percent and a bid-to-cover ratio of 2.25.

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 2.23.

Earlier this week, the Treasury revealed its auctions of $38 billion worth of three-year notes and $27 billion worth of ten-year notes both attracted above average demand.