Following yesterday's three-year note auction, the Treasury Department sold $24 billion worth of ten-year notes on Wednesday, attracting below average demand.
The ten-year note auction drew a high yield of 1.68 percent and a bid-to-cover ratio of 2.49.
The Treasury sold $21 billion worth of ten-year notes last month, drawing a high yield of 1.459 percent and a bid-to-cover ratio of 3.61.
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 3.13.
Peter Boockvar, managing director at Miller Tabak, said, "Bottom line, Mario Draghi ended the U.S. Treasury rally dead in its tracks on July 26th when he temporarily calmed markets and that certainly carried over to today's auction."
"Looking out to the next few months, it will likely remain the Europeans driving U.S. bond yields either up or down much more so than any new incremental QE from the Fed," he added.
Finishing off this week's series of long-term securities auctions, the Treasury is due to sell $16 billion worth of thirty-year bonds on Thursday.
by RTT Staff Writer
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