The Treasury Department commenced its series of long-term securities auction results this week by disclosing the outcomes of its three-year note sale on Tuesday. The auction, valued at $58 billion, demonstrated moderate demand.
This month's three-year notes achieved a high yield of 4.117 percent, with a bid-to-cover ratio standing at 2.58. In comparison, last month's identical $58 billion auction of three-year notes yielded a slightly higher rate of 4.152 percent and a bid-to-cover ratio of 2.60.
The bid-to-cover ratio serves as an indicator of demand by showing the volume of bids received for each dollar of securities on offer. Over the past ten three-year note auctions, this ratio has averaged at 2.57.
The Treasury is set to release the results of its auctions for $39 billion in ten-year notes and $22 billion in thirty-year bonds, scheduled for Wednesday and Thursday, respectively.
