Ten-Year Note Auction Attracts Below Average Demand

(RTTNews) - Continuing this week's series of announcements of the results of its long-term securities auctions, the Treasury Department on Wednesday revealed this month's auction of $42 billion worth of ten-year notes attracted below average demand.

The ten-year note auction drew a high yield of 3.960 percent and a bid-to-cover ratio of 2.32.

Last month, the Treasury sold $39 billion worth of ten-year notes last month, drawing a high yield of 4.276 percent and a bid-to-cover ratio of 2.58.

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 2.52.

The Treasury Department kicked off this week's series of announcements of the results of its long-term securities auctions on Tuesday, revealing month's auction of $58 billion worth of three-year notes attracted average demand.

On Thursday, the Treasury Department is scheduled to announce the results of this month's auction of $25 billion worth of thirty-year bonds.