The U.S. Treasury completed its latest round of long-term bond sales on Friday, auctioning $25 billion in 30-year Treasury bonds with demand remaining close to historical averages.
The 30-year bonds were sold at a yield of 5.216%, while the bid-to-cover ratio came in at 2.39. This means investors submitted bids worth 2.39 times the amount of bonds available for sale. US Treasury
For comparison, the Treasury sold $22 billion in 30-year bonds last month at a yield of 5.058%, with a bid-to-cover ratio of 2.44.
The bid-to-cover ratio is a key measure of investor demand. A higher ratio generally indicates stronger interest from buyers relative to the amount being offered. Over the last ten auctions of 30-year bonds, the average coverage ratio has been 2.40, placing the latest sale almost exactly in line with the recent trend.
The auction followed two other Treasury sales earlier in the week. The U.S. government sold $58 billion in 3-year notes and $42 billion in 10-year notes, both of which attracted demand above historical averages.
The results suggest that investor appetite for U.S. government debt remains solid, even as long-term bond yields continue to trade at elevated levels.
