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Thirty-Year Bond Auction Attracts Average Demand

After revealing strong demand for its auctions of three-year and ten-year notes, the Treasury Department on Wednesday released the results of its auction of $22 billion worth of thirty-year bonds, which attracted average demand.

The thirty-year bond auction drew a high yield of 1.342 percent and a bid-to-cover ratio of 2.30.

The Treasury sold $17 billion worth of thirty-year bonds last month, drawing a high yield of 1.325 percent and a bid-to-cover ratio of 2.35.

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 2.32.

The Treasury revealed earlier this week that its auctions of $42 billion worth of three-year notes and $32 billion worth of ten-year notes both attracted above average demand.

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