Kicking off this week's series of long-term securities auctions, the Treasury Department sold $32 billion worth of three-year notes on Tuesday, attracting average demand.
The three-year note auction drew a high yield of 0.427 percent and a bid-to-cover ratio of 3.36.
Last month, the Treasury also sold $32 billion worth of three-year notes, drawing a high yield of 0.456 percent and a bid-to-cover ratio of 3.44.
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 3.37.
Peter Boockvar, managing director at Miller Tabak, said, "In the context of obvious weakness in global markets, the save haven 3-year note auction was uneventful."
The three-year note auction comes ahead of the sale of $21 billion worth of ten-year notes on Wednesday and $13 billion worth of thirty-year bonds on Thursday.
by RTT Staff Writer
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