Three-Year Note Auction Attracts Below Average Demand

(RTTNews) - The Treasury Department kicked off this week's series of long-term securities auctions with the sale of $24 billion worth of three-year notes on Tuesday, attracting below average demand.

The three-year note auction drew a high yield of 1.034 percent and a bid-to-cover ratio of 2.69.

Last month, the Treasury also sold $24 billion worth of three-year notes, drawing a high yield of 1.045 percent and a bid-to-cover ratio of 2.92.

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 2.82.

Looking ahead, the Treasury is due to auction $23 billion worth of ten-year notes on Wednesday and $15 billion worth of thirty-year bonds on Thursday.