Three-Year Note Auction Attracts Slightly 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 $58 billion worth of three-year notes attracted slightly below average demand.

The three-year note auction drew a high yield of 3.669 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 3.891 percent and a bid-to-cover ratio of 2.51.

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 2.58.

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