logo
Plus   Neg
Share
Email

Three-Year Note Auction Attracts Below Average Demand

Kicking off this week's announcements of the results of its long-term securities auctions, the Treasury Department revealed Tuesday that its auction of $40 billion worth of three-year notes attracted below average demand.

The three-year note auction drew a high yield of 0.348 percent and a bid-to-cover ratio of 2.27.

Last month, the Treasury sold $38 billion worth of three-year notes last month, drawing a high yield of 0.563 percent and a bid-to-cover ratio of 2.20.

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 2.46.

Looking ahead, the Treasury is due to announce the results of its auction of $25 billion worth of ten-year notes on Tuesday and the results of its auction of $17 billion worth of thirty-year bonds on Wednesday.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT