Thirty-Year Bond Auction Attracts Average Demand

(RTTNews) - After reporting average demand for this month's three-year and ten-year note auctions earlier this week, the Treasury Department on Thursday revealed this month's auction of $22 billion worth of thirty-year bonds also attracted average demand.

The thirty-year bond auction drew a high yield of 4.773 percent and a bid-to-cover ratio of 2.36.

Last month, the Treasury sold $25 billion worth of thirty-year bonds, drawing a high yield of 4.694 percent and a bid-to-cover ratio of 2.29.

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 2.36.

Earlier on Thursday, the Treasury 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 results of the auction due to announced next Wednesday.

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