Thirty-Year Bond Auction Attracts Average Demand

(RTTNews) - The Treasury Department finished off this week's series of announcements of the results of its long-term securities on Thursday, revealing this month's auction of $18 billion worth of thirty-year bonds attracted average demand.

The thirty-year bond auction drew a high yield of 3.877 percent and a bid-to-cover ratio of 2.35.

Last month, the Treasury sold $21 billion worth of thirty-year bonds, drawing a high yield of 3.686 percent and a bid-to-cover ratio of 2.25.

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 2.37.

Earlier this week, the Treasury revealed this month's auction of $40 billion worth of three-year notes attracted above average demand, while this month's auction of $32 billion worth of ten-year notes attracted below average demand.