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Thirty-Year Bond Auction Attracts Below Average Demand

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

The thirty-year bond auction drew a high yield of 1.933 percent and a bid-to-cover ratio of 2.18.

Last month, the Treasury sold $24 billion worth of thirty-year bonds, drawing a high yield of 1.825 percent and a bid-to-cover ratio of 2.47.

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 2.34.

Earlier in the day, the Treasury Department announced the details of this month's auction of twenty-year bonds.

The Treasury revealed that it plans to sell $27 billion worth of twenty-year bonds, with the results of the auction due to be announced next Wednesday.

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