Demand Sags at $66 Billion in Treasury Auctions Amid Bets on Fed
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Treasury auctions of $66 billion of three-, 10- and 30-year debt this week drew lower-than-average demand for a third consecutive month amid speculation the Federal Reserve may slow its asset purchases.
Yesterday’s sale of $13 billion in 30-year bonds attracted the fewest bids since March. The bid-to-cover ratio, which gauges demand by comparing total bids with the amount of debt offered, was 2.47, versus an average of 2.58 at the past 10 sales. Primary dealers bought 51.3 percent of the sale, the most since March, versus an average of 49.5 percent at the past 10. The bonds yielded 3.355 percent, the highest since March 2012.