NEW YORK Aug 11 The U.S. Treasury sold $16
billion worth of 30-year long bonds at a poorly received
auction on Thursday, with investors showing the weakest overall
demand in 2-1/2 years and foreigners largely steering clear.
The auction suffered from the extreme volatility sweeping
through global financial markets recently, which have been
roiled by a damaging political battle over the U.S. budget and
a downgrade of the U.S. credit standing.
Investors submitted bids worth 2.08 times the amount on
offer, the lowest since February 2009. A measure of foreign
demand -- the indirect bidder category -- accounted for just 12
percent of the sale, the lowest since February 2008.
In the open market, the 30-year bond US30YT=RR lost 5
points in price immediately after the dismal auction results
(Reporting by Burton Frierson and Richard Leong; Editing by