Thirty-Year Bond Auction Attracts Below Average Demand
The Treasury Department finished off this week’s series of announcements of the results of its long-term securities auctions on Thursday, revealing that its auction of $23 billion worth of thirty-year bonds attracted below average demand.
The thirty-year bond auction drew a high yield of 1.578 percent and a bid-to-cover ratio of 2.29.
Last month, the Treasury also sold $23 billion worth of thirty-year bonds, drawing a high yield of 1.473 percent and a bid-to-cover ratio of 2.31.
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.