Three-Year Note Auction Attracts Below Average Demand

(RTTNews) - On Monday, the Treasury Department announced the results of this month's auction of $58 billion worth of three-year notes, revealing the sale attracted below average demand.

The three-year note auction drew a high yield of 4.637 percent and a bid-to-cover ratio of 2.53.

Last month, the Treasury also sold $58 billion worth of three-year notes, drawing a high yield of 4.932 percent and a bid-to-cover ratio of 2.62.

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 2.63.

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