Thirty-Year Bond Auction Attracts Roughly Average Demand

(RTTNews) - The Treasury Department on Thursday announced the results of this month's auction of $22 billion worth of thirty-year bonds, revealing the sale attracted roughly average demand.

The thirty-year bond auction drew a high yield of 4.651 percent and a bid-to-cover ratio of 2.38.

Last month, the Treasury sold $25 billion worth of thirty-year bonds, drawing a high yield of 4.813 percent and a bid-to-cover ratio of 2.27.

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 2.41.

Earlier this week, the Treasury revealed this month's auctions of $58 billion worth of three-year notes and $39 billion worth of ten-year notes attracted above average demand.

The Treasury also announced the details of this month's twenty-year bond auction on Thursday, revealing plans to sell $13 billion worth of twenty-year bonds. The results of the auction are due to be announced next Tuesday.

In August, the Treasury sold $16 billion worth of twenty-year bonds, attracting modestly below average demand.