Treasury Prices Higher After 30-Year Auction
MARKETSCOPE : Treasury bond values ended higher on Thursday, after the government's $14 billion auction of 30-year bonds.
The benchmark 10-year bonds were trading at 4.54% yield near closing time, compared to 4.59% at Wednesday's close. Yields fall when prices rise. The 30-year bonds were yielding 4.64% compared to 4.68% on Wednesday.
The Treasury's 30-year bonds were awarded at 4.53% yield. Indirect bidders, such as pension funds and other institutional investors, bought 65.4% of the new offering. The bid to cover ratio -- jargon for the number of offers made to the number of transactions agreed upon -- amounted to more than double the number of bidders to buyers at 2.05.
As part of its quarterly refunding program, the government also sold $13 billion of 10-year notes on Wednesday and $21 billion three-year notes on Tuesday.