The US Treasury auctioned $13 billion in 30-year government bonds this morning at a record low yield of 2.925%. Analysts were expecting a yield of 2.976%. The lower yields mean that the federal government will not pay as much to borrow as it paid last month, when the yield was 3.12%.
The bid-to-cover ratio of 3.05% was higher than the average of 2.65% for the previous 10 auctions. Demand for the bonds reflects continuing worries among investors over the debt crisis in Europe.
The euro has fallen below $1.30 for the first time in 11 months and gold prices are tumbling. Increased strength in the US dollar and the perception that US bonds are still very safe assets have led to the lower bond prices.
The Treasury will auction $12 billion in 5-year inflation-protected securities (TIPS) tomorrow afternoon and announce amounts for sale in next week’s 2-, 5-, and 7-year bond sales as well as next week’s short-term 3- and 6-month bond sales.
Top Gaining Stocks
Top Losing Stocks