Ten-Year Note Auction Attracts Below Average Demand
A day after reporting well below average demand for this month’s three-year note auction, the Treasury Department on Wednesday revealed this month’s auction of $39 billion worth of ten-year note also attracted below average demand.
The ten-year note auction drew a high yield of 4.560 percent and a bid-to-cover ratio of 2.34.
Last month, the Treasury also sold $39 billion worth of ten-year notes, drawing a high yield of 4.166 percent and a bid-to-cover ratio of 2.51.
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 ten-year note auctions had an average bid-to-cover ratio of 2.51.
The Treasury is due to finish off this week’s series of announcements of the results of its long-term securities auction on Thursday with the reveal of the results of this month’s auction of $22 billion worth of thirty-year bonds.
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