Ten-Year Note Auction Attracts Below Average Demand
Continuing this week’s announcements of the results of its long-term securities, the Treasury Department revealed Wednesday that its sale of $35 billion worth of ten-year notes attracted below average demand.
The ten-year note auction drew a high yield of 0.704 percent and a bid-to-cover ratio of 2.30.
Last month, the Treasury sold $38 billion worth of ten-year notes, drawing a high yield of 0.677 percent and a bid-to-cover ratio of 2.41.
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 2.47.
Looking ahead, the Treasury is due to announce the results of this month’s auction of $23 billion worth of thirty-year bonds on Thursday.