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Three-Year Note Auction Attracts Above Average Demand

Kicking off this week's series of announcements of the results of its long-term securities auctions, the Treasury revealed Tuesday that this month's auction of $42 billion worth of three-year notes attracted above average demand.

The three-year note auction drew a high yield of 3.202 percent and a bid-to-cover ratio of 2.50.

The Treasury sold $43 billion worth of three-year notes last month, drawing a high yield of 3.093 percent and a bid-to-cover ratio of 2.43.

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 2.44.

The Treasury is due to announce the result of this month's auctions of $35 billion worth of ten-year notes and $21 billion worth of thirty-year bonds on Wednesday and Thursday, respectively.

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