Ten-Year Note Auction Attracts Below Average Demand

(RTTNews) - Continuing this week's series of announcements of the results of its long-term securities auctions, the Treasury Department on Wednesday revealed this month's auction of $39 billion worth of ten-year notes attracted below average demand.

The five-year note auction drew a high yield of 4.217 percent and a bid-to-cover ratio of 2.45.

Last month, the Treasury sold $42 billion worth of ten-year notes, drawing a high yield of 4.177 percent and a bid-to-cover ratio of 2.39.

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 ten-year note auctions had an average bid-to-cover ratio of 2.51.

On Tuesday, the Treasury revealed this month's auction of $58 billion worth of three-year notes also attracted below average demand.

The Treasury is due to announce the results of this month's auction of $22 billion worth of thirty-year bonds on Thursday.