Three-Year Note Auction Attracts Below Average Demand

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The Treasury Department kicked off this week’s announcements of the results of long-term securities auctions on Tuesday, revealing that its sale of $50 billion worth of three-year notes attracted below average demand.

The three-year note auction drew a high yield of 0.170 percent and a bid-to-cover ratio of 2.28.

Last month, the Treasury sold $48 billion worth three-year notes, drawing a high yield of 0.179 percent and a bid-to-cover ratio of 2.44.

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 2.46.

The Treasury is due to announce the results of its auction of $35 billion worth of ten-year notes on Wednesday and the results of its auction of $23 billion worth of thirty-year bonds on Thursday.


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