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

After reporting mixed demand for this month's three-year and ten-year note auctions earlier this week, the Treasury revealed Thursday that this month's auction of $21 billion worth of thirty-year bonds attracted below average demand.

The thirty-year bond auction drew a high yield of 3.686 percent and a bid-to-cover ratio of 2.25.

Last month, the Treasury sold $18 billion worth of thirty-year bonds, drawing a high yield of 3.585 percent and a bid-to-cover ratio of 2.45.

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.

Earlier this week, the Treasury revealed this month's auction of $40 billion worth of three-year notes attracted below average demand, while this month's auction of $35 billion worth of ten-year notes attracted above average demand.

The Treasury also announced the details of this month's twenty-year bond auction on Thursday.

The Treasury said it plans to sell $15 billion worth of twenty-year bonds, with the results of the auction due to be announced next Wednesday.

Last month, the Treasury sold $12 billion worth of twenty-year bonds, attracting above average demand.