Ten-Year Note Auction Attracts Below Average Demand

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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.

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