Thirty-Year Bond Auction Attracts Below Average Demand

(RTTNews) - Finishing off this week's series of long-term securities auctions, the Treasury Department sold $16 billion worth of thirty-year bonds on Thursday, attracting below average demand.

The thirty-year bond auction drew a high yield of 3.69 percent and a bid-to-cover ratio of 2.27.

Last month, the Treasury sold $13 billion worth of thirty-year bonds, drawing a high yield of 3.899 percent and a bid-to-cover ratio of 2.57.

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.

Today's thirty-year bond auction came after the Treasury sold $30 billion worth of three-year notes on Tuesday and $24 billion worth of ten-year notes on Wednesday.