Thirty-Year Bond Auction Attracts Average Demand

(RTTNews) - The Treasury Department released the results of this month's auction of $16 billion worth of thirty-year bonds on Thursday, revealing the sale attracted average demand.

The thirty-year bond auction drew a high yield of 2.270 percent and a bid-to-cover ratio of 2.22.

Last month, the Treasury sold $19 billion worth of thirty-year bonds, drawing a high yield of 2.335 percent and a bid-to-cover ratio of 2.24.

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 2.22.

Earlier this week, the Treasury revealed its auction of $38 billion worth of three-year notes attracted below average demand, while its auction of $24 billion worth of ten-year notes attracted slightly above average demand.