Well Below Average Demand For Ten-Year Note Auction

(RTTNews) - Following yesterday's auction of $24 billion worth of three-year notes, the Treasury Department sold $23 billion worth of ten-year notes on Wednesday, attracting well below average demand.

The ten-year note auction drew a high yield of 2.020 percent and a bid-to-cover ratio of 2.22.

The Treasury sold $20 billion worth of ten-year notes last month, drawing a high yield of 1.793 percent and a bid-to-cover ratio of 2.53.

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 2.56.

On Thursday, the Treasury is due to finish off this week's series of long-term securities auctions with the sale of $15 billion worth of thirty-year bonds.