Thirty-Year Bond Auction Attracts Below Average Demand
The Treasury Department finished off this week's series of long-term securities auctions with the sale of $12 billion worth of thirty-year bonds on Wednesday, attracting below average demand.
The thirty-year bond auction drew a high yield of 2.790 percent and a bid-to-cover ratio of 2.21.
Last month, the Treasury sold $15 billion worth of thirty-year bonds, drawing a high yield of 2.818 percent and a bid-to-cover ratio of 2.32.
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 2.28.
Today's thirty-year bond auction came after the Treasury sold $24 billion worth of three-year notes on Monday and $20 billion worth of ten-year notes on Tuesday.