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Three-Year Note Auction Attracts Above Average Demand

On Monday, the Treasury Department kicked off this week's announcements of the results of its long-term securities auctions, revealing that its auction of $42 billion worth three-year notes attracted above average demand.

The three-year note auction drew a high yield of 0.230 percent and a bid-to-cover ratio of 2.54.

The Treasury sold $40 billion worth of three-year notes last month, drawing a high yield of 0.348 percent and a bid-to-cover ratio of 2.27.

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 2.43.

Looking ahead, the Treasury is due to announce the results of its auction of $32 billion worth of ten-year notes on Tuesday and the results of its auction of $22 billion worth of thirty-year bonds on Wednesday.

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