Ten-Year Note Auction Attracts Below Average Demand

(RTTNews) - Following yesterday's auction of $24 billion worth of three-year notes, the Treasury Department sold $23 billion worth of ten-year notes on Wednesday, attracting below average demand.

The ten-year note auction drew a high yield of 1.503 percent and a bid-to-cover ratio of 2.43.

The Treasury sold $20 billion worth of ten-year notes last month, drawing a high yield of 1.516 percent and a bid-to-cover ratio of 2.33.

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 2.61.

On Thursday, the Treasury is due to finish off this week's long-term securities auctions with the sale of $15 billion worth of thirty-year bonds.