Treasury 30-Year Bonds May Yield 3.001% at Auction, Survey Says

The Treasury’s $13 billion sale of 30-year bonds may draw a yield of 3.001 percent, according to the average forecast in a Bloomberg News survey of seven of the Federal Reserve’s 21 primary dealers.

The securities, which mature in February 2043, yielded 2.995 percent in pre-auction trading. Bids are due by 1 p.m. New York time. The yield at the March 14 offering of long bonds was 3.248 percent, and the record-low auction yield was 2.580 percent in July.

The March sale’s bid-to-cover ratio, which gauges demand by comparing the amount bid with the amount offered, was 2.43, versus an average of 2.59 at the past 10 auctions.

Indirect bidders, a class of investors that includes foreign central banks, bought 42 percent of the bonds at the March sale, versus 36.4 percent at the February auction. The average at the past 10 offerings was 36.7 percent.

Direct bidders, non-primary-dealer investors that place their bids directly with the Treasury, purchased 4.9 percent of the securities at last month’s sale, the least since September 2009. The average for the past 10 auctions is 14.7 percent.

Thirty-year bonds have lost 0.9 percent this year, compared with a 0.2 percent gain in the broader U.S. Treasuries market, according to Bank of America Merrill Lynch indexes.

The U.S. sold $21 billion of 10-year debt yesterday at a yield of 1.795 percent and auctioned $32 billion of three-year notes on April 9 at a yield of 0.342 percent.

The sales will raise $6.7 billion of new cash, as maturing securities held by the public total $59.3 billion, according to the Treasury.

Primary dealers trade government securities with the Fed and are obliged to participate in Treasury sales.

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