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Thirty-Year Bond Auction Attracts Above Average Demand

Finishing off this week's series of announcement of the results of its long-term securities auctions, the Treasury Department revealed Thursday that this month's auction of $18 billion worth of thirty-year bonds attracted above average demand.

The thirty-year bond auction drew a high yield of 3.585 percent and a bid-to-cover ratio of 2.45.

The Treasury also sold $18 billion worth of thirty-year bonds last month, drawing a high yield of 3.513 percent and a bid-to-cover ratio of 2.25.

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 2.37.

The Treasury revealed earlier this week that this month's auctions of $40 billion worth of three-year notes and $32 billion worth of ten-year notes also attracted above average demand.

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

The Treasury said it plans to sell $12 billion worth of twenty-year bonds, with the results of the auction due to be announced next Wednesday.

Last month, the Treasury also sold $12 billion worth of twenty-year bonds, attracting above average demand.

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