Ten-Year Note Auction Attracts Slightly Below Average Demand

(RTTNews) - Continuing this week's series of long-term securities auctions, the Treasury Department sold $24 billion worth of ten-year notes on Wednesday, attracting slightly below average demand.

The ten-year note auction drew a high yield of 2.795 percent and a bid-to-cover ratio of 2.54.

Last month, the Treasury sold $21 billion worth of ten-year notes, drawing a high yield of 3.009 percent and a bid-to-cover ratio of 2.68.

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 ten-year note auctions had an average bid-to-cover ratio o 2.65.

Peter Boockvar, chief market analyst at the Lindsey Group, said, "With the backup in yields to a 3-week high, the 10-year note auction was mediocre."

"As the auction was uneventful, treasuries are doing little in response, still remaining down on the day," Boockvar added.

Finishing off this week's series of long-term securities auctions, the Treasury is due to sell $16 billion worth of thirty-year bonds on Thursday.