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

The Treasury Department commenced this week's announcement of long-term securities auction results by disclosing that this month's offering of $58 billion in the three-year notes saw average demand.

The auction of the three-year note pulled a high yield of 4.605 percent with a bid-to-cover ratio of 2.63. The bid-to-cover ratio gauges the intensity of demand. It represents the volume of bids for every dollar of securities on sale.

In the last month's auction too, the Treasury offloaded $58 billion in three-year notes, which invited a high yield of 4.548 percent and a bid-to-cover ratio of 2.50.

Historically speaking, the past ten auctions of the three-year note witnessed an average bid-to-cover ratio of 2.65.

Moving forward, the Treasury will disclose the results of this month's auctions for $42 billion in ten-year notes and $25 billion in thirty-year bonds on Wednesday and Thursday respectively.