Thirty-Year Bond Auction Attracts Strong Demand

(RTTNews) - Finishing off this week's series of announcements of the results of its long-term securities auctions, the Treasury Department on Thursday revealed this month's auction of $25 billion worth of thirty-year bonds attracted well above average demand.

The thirty-year bond auction drew a high yield of 4.750 percent and a bid-to-cover ratio of 2.66.

Last month, the Treasury sold $22 billion worth of thirty-year bonds, drawing a high yield of 4.825 percent and a bid-to-cover ratio of 2.42.

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 $58 billion worth of three-year notes attracted average demand, while this month's auction of $42 billion worth of ten-year notes attracted below average demand.