Three-Year Note Auction Attracts Slightly Above Average Demand

(RTTNews) - Kicking off this week's series of announcements of the results of its long-term securities auctions, the Treasury Department revealed Tuesday that this month's auction of $50 billion worth of three-year notes attracted slightly above average demand.

The three-year note auction drew a high yield of 1.592 percent and a bid-to-cover ratio of 2.45.

The Treasury sold $52 billion worth of three-year notes last month, drawing a high yield of 1.237 percent and a bid-to-cover ratio of 2.47.

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 2.42.

Looking ahead, the Treasury is due to announce the results of this month's auctions of $37 billion worth of ten-year notes and $23 billion worth of thirty-year bonds on Wednesday and Thursday, respectively.