Thirty-Year Bond Auction Attracts Average Demand

(RTTNews) - The Treasury Department finished off this week's series of announcement of the results of its long-term securities auctions on Wednesday, revealing this month's auction of $24 billion worth of thirty-year bonds attracted average demand.

The thirty-year bond auction drew a high yield of 2.049 percent and a bid-to-cover ratio of 2.36.

Last month, the Treasury also sold $24 billion worth of thirty-year bonds, drawing a high yield of 1.910 percent and a bid-to-cover ratio of 2.49.

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 2.33.

On Tuesday, the Treasury revealed this month's auction of $58 billion worth of three-year notes attracted below average demand, while this month's auction of $38 billion worth of ten-year notes attracted above average demand.