Thirty-Year Bond Auction Attracts Average Demand

(RTTNews) - Announcing the results of this month's auction of $22 billion worth of thirty-year bonds on Thursday, the Treasury Department revealed the sale attracted average demand.

The thirty-year bond auction drew a high yield of 4.671 percent and a bid-to-cover ratio of 2.37.

The Treasury also sold $22 billion worth of thirty-year bonds last month, drawing a high yield of 4.331 percent and a bid-to-cover ratio of 2.47.

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 auctions of $58 billion worth of three-year notes and $39 billion worth of ten-year notes attracted below average demand.

The Treasury announced the details of this month's twenty-year bonds auction earlier in the day, revealing plans to sell $13 billion worth of twenty-year bonds.