The US Treasury sold $25 billion worth of 30-year government bonds at a yield of 5.046%. The auction attracted strong foreign demand, with indirect bidders purchasing $16.6 billion of the securities. The bid-to-cover ratio stood at 2.30, indicating robust investor interest. Treasury auctions are closely watched globally as US securities serve as benchmarks for borrowing costs.

The US Treasury sold $25 billion in 30-year bonds at a 5.046% yield, with strong foreign demand driving a bid-to-cover ratio of 2.30.

The US Treasury Department has sold USD 25 billion worth of 30-year government bonds at a high yield of 5.046 per cent, according to official Treasury auction results.

According to the auction results, the coupon rate, which refers to the fixed annual interest rate paid on the bond, was set at 5 per cent. However, the auction stopped at a slightly higher yield of 5.046 per cent, indicating that investors demanded slightly higher returns while purchasing the bonds.

The bonds have been issued for 30 years and will mature on May 15, 2056.

The total amount tendered in the auction stood at over USD 63.50 billion, while the total accepted amount was around USD 30.93 billion, including purchases by the Federal Reserve's System Open Market Account (SOMA).

The data shared by the department also highlighted that the auction attracted strong interest from indirect bidders, who are widely considered a proxy for foreign demand, including foreign central banks, sovereign wealth funds and overseas institutional investors.

Indirect bidders purchased around USD 16.6 billion worth of the accepted securities.

Meanwhile, direct bidders purchased around USD 5.42 billion, while primary dealers were allotted around USD 2.9 billion worth of securities.

The Treasury auction also recorded a bid-to-cover ratio of 2.30, meaning investor demand was 2.3 times the amount of bonds offered for sale.