US bond auctions continue to attract strong interest

There was also strong demand for the 30-year bond auction in the US. Following successful sales of 3- and 10-year bonds this week, the US Treasury issued $25 billion worth of 30-year bonds yesterday. The lower-than-expected yield in the auction calmed concerns about investor demand for long-term bonds. The yield in the auction, at 4.36 percent, was below the market yield of 4.38 percent just before the auction ended at 1 p.m. New York time. The lower yield suggested that demand was higher than market expectations. The largest 30-year bond sale in more than two years was the last of three auctions this week. Ahead of the auction, the 30-year bond yield climbed to its highest level in more than a week. The sales were further fueled by lower-than-expected weekly new jobless claims. The yield on the 30-year bond rose as much as 5 basis points on Thursday to 4.38 percent, its highest level since Jan. 1, but then gave back some of the gains and finished the day at 4.35 percent.