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 Wednesday, 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 5.046 percent and a bid-to-cover ratio of 2.30.

Last month, the Treasury sold $22 billion worth of thirty-year bonds, drawing a high yield of 4.876 percent and a bid-to-cover ratio of 2.39.

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 2.40.

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