Ten-Year Note Auction Attracts Slightly Below Average Demand

(RTTNews) - The Treasury Department on Wednesday announced the results of this month's auction of $39 billion worth of ten-year notes, revealing the sale attracted slightly below average demand.

The ten-year note auction drew a high yield of 4.421 percent and a bid-to-cover ratio of 2.52.

Last month, the Treasury sold $42 billion worth of ten-year notes, drawing a high yield of 4.342 percent and a bid-to-cover ratio of 2.60.

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 2.56.

On Tuesday, the Treasury revealed this month's auction of $58 billion worth of three-year notes also attracted modestly below 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 sale of $22 billion worth of thirty-year bonds.