Three-Year Note Auction Attracts Modestly Above Average Demand

The Treasury Department kicked off this week’s announcements of the results of its long-term securities auctions on Monday, revealing that this month’s auction of $38 billion worth of three-year notes attracted modestly above average demand.

The three-year note auction drew a high yield of 1.632 percent and a bid-to-cover ratio of 2.56.

Last month, the Treasury also sold $38 billion worth of three-year notes, drawing a high yield of 1.630 percent and a bid-to-cover ratio of 2.60.

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.

The Treasury is due to announce the results of its auction of $24 billion worth of ten-year notes on Tuesday and the its auction of $16 billion worth of thirty-year bonds on Thursday.

The material has been provided by InstaForex Company – www.instaforex.com