Ten-Year Note Auction Attracts Below Average Demand

(RTTNews) - The Treasury Department continued this week's series of long-term securities auctions on Wednesday with the sale of $20 billion worth of ten-year notes, attracting below average demand.

The ten-year note auction drew a high yield of 1.895 percent and a bid-to-cover ratio of 2.49.

Last month, the Treasury sold $23 billion worth of ten-year notes, drawing a high yield of 1.730 percent and a bid-to-cover ratio of 2.56.

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 2.64.

Looking ahead, the Treasury is due to finish off this week's series of long-term securities auctions with the sale of $12 billion worth of thirty-year bonds on Thursday.