NEW YORK - September 9, 2010 - This week's government debt sale ended on a sour note, with investors unfriendly toward a sale of long bonds.

The $13 billion sale of 30-year bonds fetched a high yield of 3.82%, 0.042 percentage points above the "when issued" expectations. Bidders put up 2.73 times the amount bid, a measure known as the bid-to-cover ratio.

Foreign demand also was soft, with indirect bidders making up just 36% of total buyers.

The auction brought to an end sales of $67 billion in coupon-bearing supply.

Treasuries added to losses following the auction, with the 30-year falling a point and a half in price to yield 3.82%, above the Wednesday yield of 3.73%. The benchmark 10-year note was off 20/32 for a 2.73% yield, against Wednesday's 2.66%.

U.S. government debt prices slipped earlier after data showed trade activity and labor conditions were not as dismal as some traders had feared, reducing the safehaven demand for bonds.