Three-Year Note Auction Attracts Below Average Demand
The Treasury Department kicked off this week's series of long-term securities auctions with the sale of $33 billion worth of three-year notes on Tuesday, attracting below average demand.
The three-year note auction drew a high yield of 2.685 percent and a bid-to-cover ratio of 2.51.
Last month, the Treasury sold $32 billion worth of three-year notes, drawing a high yield of 2.664 percent and a bid-to-cover ratio of 2.83.
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 2.90.
Looking ahead, the Treasury is due to sell $22 billion worth of ten-year notes on Wednesday and $14 billion worth of thirty-year bonds on Thursday.