Three-Year Note Auction Attracts Below Average Demand

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

The three-year note auction drew a high yield of 3.891 percent and a bid-to-cover ratio of 2.51.

Last month, the Treasury also sold $58 billion worth of three-year notes, drawing a high yield of 3.972 percent and a bid-to-cover ratio of 2.52.

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 2.60.

The Treasury is scheduled to announce the results of this month's auctions of $39 billion worth of ten-year notes and $22 billion worth of thirty-year bonds on Wednesday and Thursday, respectively.