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Thirty-Year Bond Auction Attracts Below Average Demand

The Treasury Department finished off this week's announcements of the results of its long-term securities auctions on Thursday, revealing that its auction of $16 billion worth of thirty-year bonds attracted below average demand.

The thirty-year bond auction drew a high yield of 2.644 percent and a bid-to-cover ratio of 2.13.

Last month, the Treasury also sold $16 billion worth of thirty-year bonds, drawing a high yield of 2.607 percent and a bid-to-cover ratio of 2.32.

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 2.26.

Earlier this week, the Treasury revealed its auction of $38 billion worth of three-year notes and $24 billion worth of ten-year notes also attracted below average demand.

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