FX.co ★ Thirty-Year Bond Auction Attracts Above Average Demand

This week's series of announcements regarding the outcomes of its long-term securities auctions was concluded by the U.S. Treasury Department on Wednesday. They disclosed that the auction of $22 billion in thirty-year bonds this month experienced above-average demand.

The auction resulted in a high yield of 4.913% and a bid-to-cover ratio of 2.52. Comparatively, in the previous month, the Treasury auctioned the same amount of thirty-year bonds, which fetched a high yield of 4.535% and a bid-to-cover ratio of 2.39. The bid-to-cover ratio serves as a demand measure, indicating the ratio of total bids received to the amount of securities on offer.

Notably, the previous ten thirty-year bond auctions saw an average bid-to-cover ratio of 2.43. Earlier in the week, the Treasury reported modestly above-average demand for its auction of $58 billion in three-year notes. In contrast, the auction of $39 billion in ten-year notes attracted average demand.