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Thirty-Year Bond Auction Attracts Above Average Demand

After reporting slightly above average demand for this month's three-year and ten-year notes auctions, the Treasury Department revealed Thursday that this month's auction of $22 billion worth of thirty-year bonds also attracted above average demand.

The thirty-year bond auction drew a high yield of 2.075 percent and a bid-to-cover ratio of 2.35.

Last month, the Treasury also sold $22 billion worth of thirty-year bonds last month, drawing a high yield of 1.895 percent and a bid-to-cover ratio of 2.22.

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 2.29.

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

The Treasury revealed it plans to sell $20 billion worth of twenty-year bonds, with the results of the auction due to be announced next Wednesday.

Last month, the Treasury also sold $20 billion worth of twenty-year bonds, attracting well above average demand.

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