Thirty-Year Bond Auction Attracts Strong Demand

(RTTNews) - After reporting slightly below average demand for this month's three-year and ten-year auctions earlier this week, the Treasury Department revealed on Thursday that this month's auction of $20 billion worth of thirty-year bonds attracted well above average demand.

The thirty-year bond auction drew a high yield of 2.375 percent and a bid-to-cover ratio of 2.46, while the ten previous thirty-year bond auctions had an average bid-to-cover ratio of 2.28.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

Last month, the Treasury sold $23 billion worth of thirty-year bonds, drawing a high yield of 2.340 percent and a bid-to-cover ratio of 2.30.