Thirty-Year Bond Auction Attracts Above Average Demand

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

The thirty-year bond auction drew a high yield of 4.871 percent and a bid-to-cover ratio of 2.45.

Last month, the Treasury sold $25 billion worth of thirty-year bonds, drawing a high yield of 4.750 percent and a bid-to-cover ratio of 2.66.

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 2.39.

The Treasury revealed earlier this week that this month's auction of $58 billion worth of three-year notes and $39 billion worth of ten-year notes both attracted below average demand.

Earlier on Thursday, the Treasury Department announced the details of this month's auction of twenty-year bonds.

The Treasury revealed plans to sell $13 billion worth of twenty-year bonds, with the result of the auction due to be announced next Tuesday.

Last month, the Treasury sold $16 billion worth of twenty-year bonds, attracting well below average demand.