Thirty-Year Bond Auction Attracts Below Average Demand

(RTTNews) - The Treasury Department finished off this week's series of long-term securities auctions with the sale of $13 billion worth of thirty-year bonds on Wednesday, attracting below average demand.

The thirty-year bond auction drew a high yield of 2.430 percent and a bid-to-cover ratio of 2.32.

Last month, the Treasury also sold $13 billion worth of thirty-year bonds, drawing a high yield of 2.848 percent and a bid-to-cover ratio of 2.76.

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 2.48.

Today's thirty-year bond auction came after the Treasury sold $24 billion worth of three-year notes on Monday and $21 billion worth of ten-year notes on Tuesday.