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Thirty-Year Bond Auction Attracts Modestly Below Average Demand

Finishing off this week's series of announcements of the results of its long-term securities auctions, the Treasury Department revealed Thursday that this month's auction of $21 billion worth of thirty-year bonds attracted modestly below average demand.

The thirty-year bond auction drew a high yield of 3.106 percent and a bid-to-cover ratio of 2.31.

Last month, the Treasury sold $19 billion worth of thirty-year bonds, drawing a high yield of 3.115 percent and a bid-to-cover ratio of 2.44.

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.

The Treasury revealed earlier this week that this month's auctions of $42 billion worth of three-year notes and $35 billion worth of ten-year notes both attracted above average demand.

Earlier on Thursday, the Treasury also announced the details of this month's twenty-year bond auction.

The Treasury said its plans to sell $15 billion worth of twenty-year bonds, with the results of the auction due to be announced next Wednesday.

Last month, the Treasury sold $14 billion worth of twenty-year bonds, attracting above average demand.

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