Ten-Year Note Auction Attracts Below Average Demand

(RTTNews) - A day after revealing this month's auction of $58 billion worth of three-year notes attracted below average demand, the Treasury Department on Tuesday revealed this month's sale of $42 billion worth of ten-year notes also attracted below average demand.

The ten-year note auction drew a high yield of 5.020 percent and a bid-to-cover ratio of 2.46.

Last month, the Treasury sold $39 billion worth of ten-year notes, drawing a high yield of 5.300 percent and a bid-to-cover ratio of 2.77.

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 2.54.

The Treasury is due to finish off this week's series of announcements of the results of its long-term securities auctions on Thursday by revealing the results of this month's sale of $25 billion worth of thirty-year bonds.