30-year Treasurys auction at record low yield

The United States Treasury Department auctioned 30-year bonds at a record low yield Wednesday as fears about Europe and the US economy fed demand for lower-risk investments.

The US government sold US$13 billion of bonds at a yield of 3.31 per cent. That's slightly lower than the yield just before the auction closed. The lower yield indicates that demand for the bonds was strong.

Demand has grown for longer-term Treasurys because many expect the Federal Reserve to start buying them this fall. That would make the bonds more valuable and lower their yields.