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

The Treasury Department released the results of this month's $58 billion three-year note auction on Tuesday, indicating strong demand. The auction yielded an interest rate of 4.399% with a bid-to-cover ratio of 2.67, a benchmark for assessing demand which signifies the number of bids per dollar of securities sold.

In comparison, last month’s auction of the same amount of three-year notes yielded a higher interest rate of 4.659% and featured a lower bid-to-cover ratio of 2.43. Historically, the last ten auctions for three-year notes have averaged a bid-to-cover ratio of 2.58.

Looking forward, the Treasury is scheduled to announce the results of additional auctions this week: $39 billion in ten-year notes on Wednesday, and $22 billion in thirty-year bonds on Thursday.