Thirty-Year Bond Auction Attracts Modestly Below Average Demand
After reporting below average demand for its auctions of three-year and ten-year notes earlier this week, the Treasury Department revealed on Thursday that its auction of $23 billion worth of thirty-year bonds also attracted modestly below average demand.
The thirty-year bond auction drew a high yield of 1.473 percent and a bid-to-cover ratio of 2.31.
The Treasury sold $26 billion worth of thirty-year bonds last month, drawing a high yield of 1.406 percent and a bid-to-cover ratio of 2.14.
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 2.36.
Meanwhile, the Treasury Department also announced the details of this month’s auction of twenty-year bonds.
The Treasury said it plans to sell $22 billion worth of twenty-year bonds, with the results due to be announced next Tuesday.