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

(RTTNews) - The Treasury Department announced the results of this month's auctions of $50 billion worth of three-year notes and $37 billion worth of ten-year notes on Monday, with the sales attracting mixed demand.

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

The three-year note auction drew a high yield of 4.490 percent and a bid-to-cover ratio of 2.42.

Last month, the Treasury sold $48 billion worth of three-year notes, drawing a high yield of 4.701 percent and a bid-to-cover ratio of 2.67.

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 2.70.

Meanwhile, the ten-year note auction drew a high yield of 4.296 percent and a bid-to-cover ratio of 2.53.

The Treasury sold $40 billion worth of ten-year notes last month, drawing a high yield of 4.519 percent and a bid-to-cover ratio of 2.45.

The ten previous ten-year note auctions had an average bid-to-cover ratio of 2.47.

On Tuesday, the Treasury is due to announce the results of this month's auction of $21 billion worth of thirty-year bonds.