US Treasury sells 30-year bonds at lower rates

Markets 7/12/2018, 7:17 PM
US Treasury sells 30-year bonds at lower rates

The United States Department of the Treasury reopened for the second time an auction of debt maturing in May 2048 and sold $14 billion more. The bonds were met with a bid-to-cover ratio of 2.34, the least in five months, compared to 2.38 registered as the demand gauge for the second issue one month before. The thirty-year securities yielded a maximum of 2.958% or 14.2 basis points less than in the operation executed on June 12.

The high yield, at the lowest point since January, is the benchmark, but the rate is rounded to the first eighth of a percentage point below it. The when-issued level was 0.4 points lower than the high yield.

Indirect bidders – a category including foreign central banks and international monetary authorities, purchased 61.88% of the debt, the smallest share since April and a little less than last time. Direct bidders took 10.33%, the most in three months, with primary dealers snapping up the remaining 27.8% of awarded competitive bids.

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