Thirty-Year Bond Auction Attracts Below Average Demand

(RTTNews) - Finishing off this week's series of announcements of the results of its long-term securities auctions, the Treasury Department revealed Thursday that this month's auction of $22 billion worth of thirty-year bonds attracted below average demand.

The thirty-year bond auction drew a high yield of 1.895 percent and a bid-to-cover ratio of 2.22.

The Treasury sold $25 billion worth of thirty-year bonds last month, drawing a high yield of 1.940 percent and a bid-to-cover ratio of 2.20.

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 2.29.

Earlier this week, the Treasury revealed this month's auctions of $54 billion worth of three-year notes and $36 billion worth of ten-year notes also attracted below average demand.