Finishing off this week’s series of announcements of the results of its long-term securities auctions, the Treasury Department revealed Thursday that this month’s auction of $27 billion worth of thirty-year bonds attracted below average demand.
The thirty-year bond auction drew a high yield of 2.040 percent and a bid-to-cover ratio of 2.21.
Last month, the Treasury sold $24 billion worth of thirty-year bonds, drawing a high yield of 2.000 percent and a bid-to-cover ratio of 2.19.
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 2.31.
The below average demand for the thirty-year bond auction came after the Treasury’s auctions of three-year and ten-year notes earlier this week attracted strong demand.
Earlier in the day, the Treasury revealed that it plans to sell $27 billion worth of twenty-year bonds this month, with the results of the auction due to be announced next Wednesday.