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Three-Year, Ten-Year Note Auctions Attract Mixed Demand

The Treasury Department on Monday announced the results of this month's auctions of $41 billion worth of three-year notes and $32 billion worth of ten-year notes.

While the three-year note auction attracted modestly above average demand, the ten-year note auction attracted below average demand.

The three-year note auction drew a high yield of 3.564 percent and a bid-to-cover ratio of 2.49.

Last month, the Treasury sold $42 billion worth of three-year notes, drawing a high yield of 3.202 percent and a bid-to-cover ratio of 2.50.

The ten previous three-year note auctions had an average bid-to-cover ratio of 2.45.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

Meanwhile, the ten-year note auction drew a high yield of 3.330 percent and a bid-to-cover ratio of 2.37.

The Treasury sold $35 billion worth of ten-year notes last month, drawing a high yield of 2.755 percent and a bid-to-cover ratio of 2.53.

The ten previous ten-year note auctions had an average bid-to-cover ratio of 2.46.

The Treasury is due to finish off this week's series of announcements of the results of its long-term securities auctions on Tuesday, announcing the results of this month's auction of $18 billion worth of thirty-year bonds.

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