FX.co ★ Three-Year Note Auction Attracts Well Below Average Demand

The US Treasury Department has publicly shared the outcome of its recent auction of three-year notes, valued at $58 billion. The level of interest this sale sparked was notably lower than usual.

The auction for the three-year note concluded with a high yield of 4.548 percent, complemented by a bid-to-cover ratio of 2.50. Just a month ago, the Treasury put up $56 billion worth of three-year notes and attracted a high yield of 4.256 percent, alongside a higher bid-to-cover ratio of 2.60.

The bid-to-cover ratio acts as a demand indicator, showing the value of bids for every dollar of the securities on sale. The average bid-to-cover ratio for the past ten three-year note auctions was recorded to be 2.67.

In the near future, the Treasury is set to disclose the outcomes of the current month's auctions for ten-year notes worth $39 billion, and thirty-year bonds valued at $22 billion. These results are expected to be announced on Wednesday and Thursday, respectively.