FX.co ★ Three-Year, Ten-Year Note Auctions Attract Mixed Demand

The Treasury Department on Monday announced the results of this month's auctions of $40 billion worth of three-year notes and $32 billion worth of ten-year notes.

While the three-year note auction attracted modestly above average demand, the ten-year note auction attracted below average demand.

The three-year note auction drew a high yield of 4.093 percent and a bid-to-cover ratio of 2.55.

Last month, the Treasury also sold $40 billion worth of three-year notes, drawing a high yield of 4.605 percent and a bid-to-cover ratio of 2.57.

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 2.49.

Meanwhile, the ten-year note auction drew a high yield of 3.625 percent and a bid-to-cover ratio of 2.31.

The Treasury sold $35 billion worth of ten-year notes last month, drawing a high yield of 4.140 percent and a bid-to-cover ratio of 2.23.

The ten previous ten-year note auctions had an average bid-to-cover ratio of 2.43.

On Tuesday, the Treasury is due to announce the results of this month's auction of $18 billion worth of thirty-year bonds.