Ten-Year Note Auction Attracts Modestly 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 modestly below average demand.

The ten-year note auction drew a high yield of 4.632 percent and a bid-to-cover ratio of 2.48.

Last month, the Treasury sold $39 billion worth of ten-year notes, drawing a high yield of 4.480 percent and a bid-to-cover ratio of 2.53.

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 2.53.

On Tuesday, the Treasury revealed this month's auction of $58 billion worth of three-year notes attracted well above average demand.

The Treasury is due to finish off this week's series of announcements of the results of its long-term securities auctions on Thursday by revealing the results of this month's auction of $25 billion worth of thirty-year bonds