Thirty-year bond auction attracts strong demand | 06.11.24

(RTTNews) – The Treasury Department on Wednesday wrapped up its series of announcements of the results of this week’s long-term securities auctions, revealing that sales of $25 billion worth of 30-year bonds attracted well above average demand this month.

The thirty-year bond auction yielded a high yield of 4.608 percent and a bid-to-cover ratio of 2.64.

Last month, the Treasury Department sold $22 billion worth of 30-year bonds, yielding a high interest rate of 4.389 percent and a bid-to-cover ratio of 2.50.

The bid-to-cover ratio is a measure of demand that indicates the number of bids for each dollar of securities sold.

The ten previous auctions of thirty-year bonds had an average bid-to-cover ratio of 2.40.

Earlier this week, the Treasury Department revealed that this month’s auctions of $58 billion in three-year bonds and $42 billion in 10-year bonds also attracted above-average demand.