Three-Year Note Auction Attracts Slightly Below Average Demand

(RTTNews) - The Treasury Department kicked off this week's series of announcement of the results of its long-term securities auctions on Tuesday, revealing this month's auction of $48 billion worth of three-year notes attracted slightly below average demand.

The three-year note auction drew a high yield of 1.775 percent and a bid-to-cover ratio of 2.39.

Last month, the Treasury sold $50 billion worth of three-year notes, drawing a high yield of 1.592 percent and a bid-to-cover ratio of 2.45.

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 2.43

Looking ahead, the Treasury is due to announce the results of this month's auctions of $34 billion worth of ten-year notes and $20 billion worth of thirty-year bonds on Wednesday and Thursday, respectively.