US Treasury auctions 30-year bonds at low yield

AP News
Posted: Aug 09, 2012 3:46 PM

The U.S. government auctioned $16 billion in 30-year bonds at a low yield Thursday, reflecting continued strong demand for ultra-safe investments.

The bonds were priced to yield 2.825 percent, the Treasury Department said. That's slightly higher than the yield at the time on similar bonds trading in the market, according to data from CRT Capital Group LLC, a brokerage for big-money investors.

The yield remains low by historical standards. Just over a year ago, the 10-year Treasury note fetched a higher yield than the new 30-year bonds. Demand at the auction was unusually strong from indirect bidders, including overseas central banks seeking shelter from uncertainty about Europe and the global economy.

The price of the 30-year Treasury bond settled down 12.5 cents, pushing its yield up to 2.76 percent late Thursday from 2.75 percent late Wednesday.

In other trading, the price of the 10-year Treasury note declined 6.25 cents, pushing its yield up to 1.70 percent from 1.65 percent late Wednesday.

The yield on the two-year Treasury note was unchanged at 0.28 percent. The yield on the three-month Treasury bill was unchanged at 0.11 percent.