Thirty-Year Bond Auction Attracts 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 sale of $21 billion worth of thirty-year bonds attracted average demand.

The thirty-year bond auction drew a high yield of 4.229 percent and a bid-to-cover ratio of 2.37.

The Treasury also sold $21 billion worth of thirty-year bonds last month, drawing a high yield of 4.344 percent and a bid-to-cover ratio of 2.43.

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 2.38.

Earlier in the day, the Treasury also announced the details of this month's auction of twenty-year bonds.

The Treasury revealed plans to sell $13 billion worth of twenty-year bonds, with the results of the auction due to be announced next Wednesday.

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

The Treasury announced the results of this month's auction of $52 billion worth of three-year notes and $37 billion worth of ten-year notes earlier this week.

The three-year note auction attracted slightly below average demand, while the ten-year note auction attracted above average demand.