Three-Year Note Auction Attracts Slightly Below Average Demand

The Treasury Department kicked off this week’s series of long-term securities auctions on Tuesday with the sale of $24 billion worth of three-year notes, which attracted slightly below average demand.

The three-year note auction drew a high yield of 1.630 percent and a bid-to-cover ratio of 2.74.

Last month, the Treasury also sold $24 billion worth of three-year notes, drawing a high yield of 1.423 percent and a bid-to-cover ratio of 2.78.

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 2.82.

Looking ahead, the Treasury is due to sell $20 billion worth of ten-year notes on Wednesday and $12 billion worth of thirty-year bonds on Thursday.

The material has been provided by InstaForex Company – www.instaforex.com

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