Interest Rates Jump After Weak Bond Auction
May 8, 2014, 22:54 IST
Long-term bonds are tumbling and interest rates are spiking after a 30-year Treasury bond auction saw weak demand.
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According to Bloomberg, 30-year Treasury bonds sold at a yield of 3.44%, which was much higher than the 3.392% expected by analysts.
The bid-to-cover ratio, a measure of demand, was low at 2.09. Analysts were looking for a ratio of closer to 2.36.
More to come...