FX.co ★ Ten-Year Note Auction Attracts Above Average Demand

This week, the Treasury Department continued its series of announcements on long-term securities auctions by reporting strong demand for its ten-year notes. On Tuesday, the department unveiled the auction results for $39 billion worth of ten-year notes, which achieved a high yield of 4.438% and a bid-to-cover ratio of 2.67.

In comparison, last month's auction saw the sale of $42 billion worth of ten-year notes with a slightly higher yield of 4.483% and a bid-to-cover ratio of 2.49. The bid-to-cover ratio serves as an important metric, indicating the level of demand by showing the ratio of total bids to the amount of securities being sold.

Notably, the average bid-to-cover ratio for the previous ten ten-year note auctions stood at 2.50.

Further details from the Treasury on Monday revealed that this month's auction of $58 billion worth of three-year notes observed below-average demand. The Treasury is also set to announce the results of its $22 billion thirty-year bond auction on Thursday.