Thirty-Year Bond Auction Attracts Below Average Demand

(RTTNews) - A day after reporting mixed demand for this month's three-year and ten-year note auctions, the Treasury Department on Tuesday revealed this month's auction of $18 billion worth of thirty-year bonds attracted below average demand.

The thirty-year bond auction drew a high yield of 3.513 percent and a bid-to-cover ratio of 2.25.

Last month, the Treasury sold $21 billion worth of thirty-year bonds, drawing a high yield of 4.080 percent and a bid-to-cover ratio of 2.42.

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 2.38.

On Monday, the Treasury announced the results of this month's auctions of $40 billion worth of three-year notes and $32 billion worth of ten-year notes.

While the three-year note auction attracted modestly above average demand, the ten-year note auction attracted below average demand.