Thirty-Year Bond Auction Attracts Strong Demand

(RTTNews) - The Treasury Department finished off this week's series of announcement of the results of its long-term securities auctions on Wednesday, revealing this month's sale of $25 billion worth of thirty-year bonds attracted well above average demand.

The thirty-year bond auction drew a high yield of 4.608 percent and a bid-to-cover ratio of 2.64.

Last month, the Treasury sold $22 billion worth of thirty-year bonds, drawing a high yield of 4.389 percent and a bid-to-cover ratio of 2.50.

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 2.40.

Earlier this week, the Treasury revealed this month's auctions of $58 billion worth of three-year notes and $42 billion worth of ten-year notes also attracted above average demand.