Ten-Year Note Auction Attracts Well Below Average Demand

(RTTNews) - The Treasury Department continued this week's series of announcements of the results of its long-term securities auctions on Wednesday, revealing this month's auction of $35 billion worth of ten-year notes attracted well below average demand.

The ten-year note auction drew a high yield of 4.140 percent and a bid-to-cover ratio of 2.23.

Last month, the Treasury sold $32 billion worth of ten-year notes, drawing a high yield of 3.930 percent and a bid-to-cover ratio of 2.34.

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 of 2.46.

On Tuesday, the Treasury revealed this month's auction of $40 billion worth of three-year notes attracted above average demand.

The Treasury is due to announce the results of this month's auction of $21 billion worth of thirty-year bonds on Thursday.