Treasury Bond Auction Demand Rises as Investors Downplay Moody’s
This article is for subscribers only.
The Treasury attracted higher-than average-demand for a third consecutive sale at today’s auction of 30-year bonds as investors downplayed Moody’s Investors Service’s warning that the nation’s rating may be downgraded.
The bid-to-cover ratio on the $13 billion in bonds, which gauges demand by comparing total bids with the amount offered, was 2.80, versus a 2.64 average at the past 10 sales. The auction followed three- and 10-year note sales that were the first since the Federal Reserve ended its bond purchases under quantitative easing on June 30.