Thirty-Year Bond Auction Attracts Average Demand

(RTTNews) - Finishing off this week's series of announcement of the results of its long-term securities auctions, the Treasury Department on Wednesday revealed this month's auction of $20 billion worth of thirty-year bonds attracted average demand.

The thirty-year bond auction drew a high yield of 2.815 percent and a bid-to-cover ratio of 2.30.

The Treasury also sold $20 billion worth of thirty-year bonds last month, drawing a high yield of 2.375 percent and a bid-to-cover ratio of 2.46.

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 2.31.

Earlier this week, the Treasury revealed this month's auction of $46 billion worth of three-year notes attracted slightly above average demand, while this month's auction of $34 billion worth of ten-year notes attracted below average demand.