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Thirty-Year Bond Auction Attracts Slightly Below Average Demand

Finishing off this week's announcements of the results of its long-term securities auctions, the Treasury Department revealed on Thursday that its sale of $27 billion worth of thirty-year bonds attracted slightly below average demand.

The thirty-year bond auction drew a high yield of 1.680 percent and a bid-to-cover ratio of 2.29.

The Treasury sold $23 billion worth of thirty-year bonds last month, drawing a high yield of 1.578 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 2.35.

Earlier this week, the Treasury revealed that its auction of $54 billion worth of three-year notes attracted average demand, while its auction of $41 billion worth of ten-year notes attracted below average demand.

The Treasury also announced the details of this month's auction of twenty-year bonds on Thursday, revealing that it plans to sell $27 billion worth of twenty-year bonds.

The results of the twenty-year bond auction are scheduled to be announced next Wednesday.

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