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

The U.S. Treasury Department disclosed on Monday the outcomes of its latest auction of $58 billion in three-year notes, which saw a demand slightly surpassing the average level. The auction resulted in a high yield of 4.152% and achieved a bid-to-cover ratio of 2.60. In comparison, last month’s sale, also comprising $58 billion in three-year notes, resulted in a high yield of 3.878% with a bid-to-cover ratio of 2.45.

The bid-to-cover ratio is an essential indicator of demand, reflecting the number of bids submitted for each dollar of securities available for purchase. Over the past ten auctions of three-year notes, the average bid-to-cover ratio stood at 2.57.

The Treasury is set to announce the results for this month's auctions of $42 billion in ten-year notes and $25 billion in thirty-year bonds on the upcoming Tuesday and Wednesday, respectively.