Three-Year Note Auction Attracts Modestly Below Average Demand

Kicking off this week's series of announcements of the results of its long-term securities auctions, the treasury Department on Monday revealed this month's auction of $58 billion worth of three-year notes attracted modestly below average demand.

The three-year note auction drew a high yield of 3.824 percent and a bid-to-cover ratio of 2.56.

The Treasury also sold $58 billion worth of three-year notes last month, drawing a high yield of 3.784 percent and a bid-to-cover ratio of 2.47.

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 2.61.

The Treasury is scheduled to announce the results of this month's auctions of $42 billion worth of ten-year notes and $25 billion worth of thirty-year bonds on Tuesday and Thursday, respectively.