Three-Year Note Auction Attracts Below Average Demand

(RTTNews) - Kicking off this week's series of announcements of the results of its long-term securities auctions, the Treasury Department on Tuesday revealed this month's auction of $54 billion worth of three-year notes attracted below average demand.

The three-year note auction drew a high yield of 4.169 percent and a bid-to-cover ratio of 2.58.

Last month, the Treasury sold $52 billion worth of three-year notes, drawing a high yield of 4.105 percent and a bid-to-cover ratio of 2.67.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

The ten previous three-year note auctions had an average bid-to-cover ratio of 2.71.

Looking ahead, the Treasury is due to announce the results of this month's auctions $42 billion worth of ten-year notes and $25 billion worth of thirty-year bonds on Wednesday and Thursday, respectively.