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

The Treasury Department commenced this week's announcements regarding the outcomes of its long-term securities auctions on Monday, disclosing that the sale of $58 billion in three-year notes for this month experienced lower-than-average demand.

This three-year note auction resulted in a high yield of 4.659 percent and a bid-to-cover ratio of 2.43.

In comparison, last month's auction of $58 billion in three-year notes achieved a high yield of 4.605 percent and a bid-to-cover ratio of 2.63.

The bid-to-cover ratio serves as a demand indicator, reflecting the volume of bids for each dollar's worth of securities sold.

The past ten three-year note auctions have had an average bid-to-cover ratio of 2.63.

Looking ahead, the Treasury is set to reveal the results of this month's auctions for $39 billion in ten-year notes and $22 billion in thirty-year bonds on Tuesday and Thursday, respectively.