Thirty-Year Bond Auction Attracts Modestly Below Average Demand

(RTTNews) - The Treasury Department announced the results of this month's auction of $22 billion worth of thirty-year bonds on Thursday, revealing the sale attracted modestly below average demand.

The thirty-year bond auction drew a high yield of 4.889 percent and a bid-to-cover ratio of 2.38.

Last month, the Treasury also sold $22 billion worth of thirty-year bonds last month, drawing a high yield of 4.844 percent and a bid-to-cover ratio of 2.43.

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 2.43.

Earlier this week, the Treasury revealed this month's auction of $58 billion worth of three-year notes attracted below average demand, while this month's auction of $39 billion worth of ten-year notes attracted slightly above average demand.