The Treasury Department reported outcomes from the recent auction of $39 billion in ten-year notes, highlighting that the sale experienced moderate demand. The auction yielded a high rate of 4.480 percent, alongside a bid-to-cover ratio of 2.53. In the prior month, the Treasury offered an equal amount of ten-year notes, resulting in a slightly lower high yield of 4.235 percent and a bid-to-cover ratio of 2.70.
In context, the bid-to-cover ratio serves as an indicator of demand, representing the volume of bids compared to the amount of securities available. Historically, the last ten auctions for these notes have maintained an average bid-to-cover ratio of 2.53.
Additionally, on Monday, the Treasury disclosed that the auction of $58 billion in three-year notes also saw average interest from bidders. Concluding this series, the Treasury is scheduled to announce the results of its long-term securities auctions on Wednesday, specifically reporting on the auction of $22 billion in thirty-year bonds.
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