Auction of 30-year bonds draws average demand

WASHINGTON (dpa-AFX) – After reporting above-average demand for its three- and 10-year bond auctions this month, the Treasury Department said Thursday that its $22 billion 30-year bond auction drew average demand this month.

The 30-year bond auction produced a high yield of 4.015 percent and a bid-to-cover ratio of 2.38.

The Treasury Department last month sold $25 billion in 30-year bonds with a high yield of 4.314 percent and a bid-to-cover ratio of 2.31.

The bid-to-cover ratio is a measure of demand. It indicates how many bids there are for each dollar of securities sold.

The ten previous auctions of 30-year bonds had an average bid-to-cover ratio of 2.38.

Earlier this week, the Treasury Department said this month’s auctions of $58 billion in three-year bonds and $39 billion in 10-year bonds drew above-average demand.

Copyright(c) 2024 RTTNews.com. All rights reserved.

Copyright RTT News/dpa-AFX