Treasury Bond Auction Demand Rises Amid Low Inflation Outlook
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The U.S. sale of $13 billion of bonds drew higher-than-average demand as investors favored the security over three- and 10-year debt this week amid yields at almost the highest in 2 1/2 years and low inflation.
The Treasury sold the 30-year securities yesterday at a bid-to-cover ratio of 2.57, compared with 2.38 at the previous 10 sales. The ratio gauges demand by comparing total bids with the amount offered. The auction followed a $21 billion sale of 10-year notes Jan. 8 with demand of 2.68, below the average of 2.7 at the past 10 offerings, and a three-year $30 billion auction the previous day with demand of 3.25, the lowest since October.