Investing.com -- The US government solid $22 billion of 30-year notes on Wednesday at a lower-than-expected yield, pointing to strong demand and confidence that the Federal Reserve will follow through on rate cuts this year.
The notes were awarded at 4.331%, below the pre-sale, or when-issue, rate of 4.352%, underscoring stronger-than-expected demand for duration as bets on the Fed cutting rates as soon as June.
The bid to cover ratio, a measure demand, for the auction was 2.47, up from the 2.40 ratio in the previous auction.
The 330-year Treasury traded at 4.332% following the news, down from the day's high of 4.359%, dragging other Treasury yields including the yields on the 10-year treasury lower.