The U.S. Treasury has just sold its 3.625% 30-year Treasury bonds, or the so-called long bond, at a yield of 3.525%. The recent unsettling of the stock market recovery might have aided this offering, and a Greek bond offering for the first time in about four-years may have added more comfort into bidding on this bond auction.
What stood out was an impressive bid-to-cover ratio of 2.52, meaning that $2.52 worth of bids into the Treasury were submitted for every $1 accepted by the Treasury. The recent average had been put at 2.36 on the bid-to-cover. One issue that may have added to the bidding strength was that dealers were more than 38% of the auction.
What is most important here is that the auction was basically at the money with on the run Treasuries.
With the U.S. government still running large deficits and with the U.S. Debt Clock now above $17.5 trillion, the bond bears have to be wondering where on earth those higher interest rates are — and when those higher rates will finally come.
SEE ALSO: Why NBG Should Like Greece’s Bond Sale But Didn’t
Essential Tips for Investing (Sponsored)
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.