Thirty-Year Bond Auction Attracts Average Demand

(RTTNews) - The Treasury Department finished off this week's announcements of the results of its long-term securities auctions on Thursday, revealing this month's auction of $23 billion worth of thirty-year bonds attracted average demand.

The thirty-year bond auction drew a high yield of 2.340 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 2.075 percent and a bid-to-cover ratio of 2.35.

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 2.30.

Earlier this week, the Treasury revealed this month's auction of $37 billion worth of ten-year notes attracted well above average demand, while this month's auction of $50 billion worth of three-year notes attracted slightly above average demand.

The Treasury on Thursday also announced that it plans to auction $19 billion worth of twenty-year bonds this month, with the results due to be revealed next Wednesday.