Three-Year Note Auction Attracts Modestly Below Average Demand

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

The three-year note auction drew a high yield of 4.179 percent and a bid-to-cover ratio of 2.60.

Last month, the Treasury also sold $58 billion worth of three-year notes, drawing a high yield of 4.192 percent and a bid-to-cover ratio of 2.64.

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 two-year note auctions had an average bid-to-cover ratio of 2.66.

The Treasury is due 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.