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Thirty-Year Bond Auction Attracts Above Average Demand

After revealing mixed demand for this month's three-year and ten-year note auctions earlier this week, the Treasury Department revealed Thursday that this month's auction of $21 billion worth of thirty-year bonds attracted above average demand.

The thirty-year bond auction drew a high yield of 4.080 percent and a bid-to-cover ratio of 2.42

The Treasury sold $18 billion worth of thirty-year bonds last month, drawing a high yield of 3.930 percent and a bid-to-cover ratio of 2.39.

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 also announced the details of this month's twenty-year bond auction on Thursday, revealing plans to sell $15 billion worth of twenty-year bonds.

The results of the twenty-year bond auction will be announced next Wednesday.

Last month's auction of $12 billion worth of twenty-year bonds attracted modestly below average demand.

Earlier this week, the Treasury revealed this month's auction of $40 billion three-year notes attracted above average demand, while this month's auction of $35 billion worth of ten-year notes attracted well below average demand.

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