Treasuries Decline After $13 Billion Auction of 30-Year Bonds
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Treasuries fell as the government sold $13 billion of 30-year bonds after economic reports showed initial jobless claims dropped last week more than economists forecast and the trade deficit narrowed.
The bonds drew a yield of 3.820 percent, compared with the average forecast of 3.806 percent in a Bloomberg News survey of 9 of the Federal Reserve’s 18 primary dealers. The bid-to-cover ratio, which gauges demand by comparing total bids with the amount offered, was 2.73, versus 2.77 at the auction last month and an average of 2.65 for the past 10 offerings. Today’s sale, a reopening of the August sale, is the final of three note and bond auctions this week totaling $67 billion.