Three-Year Note Auction Attracts Modestly Below Average Demand
(RTTNews) - On Tuesday, the Treasury Department announced the results of this month's auction of $38 billion worth of three-year notes, revealing the auction attracted modestly below average demand.
The three-year note auction drew a high yield of 1.413 percent and a bid-to-cover ratio of 2.43.
The Treasury also sold $38 billion worth of three-year notes last month, drawing a high yield of 1.573 percent and a bid-to-cover ratio of 2.42.
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 2.49.
Looking ahead, the Treasury is due to announce the results of its auctions of $24 billion worth of ten-year notes and $16 billion worth of thirty-year bonds on Wednesday and Thursday, respectively.