Ten-Year Note Auction Attracts Below Average Demand
Following the auction of $36 billion worth of three-year notes earlier in the day, the Treasury Department sold $23 billion worth of ten-year notes on Wednesday, attracting below average demand.
The ten-year note auction drew a high yield of 3.225 percent and a bid-to-cover ratio of 2.39.
The Treasury also sold $23 billion worth of ten-year notes last month, drawing a high yield of 2.957 percent and a bid-to-cover ratio of 2.58.
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 2.62.
On Thursday, the Treasury is due to finish off this week's long-term securities auctions with the sale of $15 billion worth of thirty-year bonds.