Ten-Year Note Auction Attracts Average Demand

(RTTNews) - Following yesterday's three-year note auction, the Treasury Department sold $21 billion worth of ten-year notes on Wednesday, attracting average demand.

The ten-year note auction drew a high yield of 3.009 percent and a bid-to-cover ratio of 2.68.

The Treasury also sold $21 billion worth of ten-year notes last month, drawing a high yield of 2.824 percent and a bid-to-cover ratio of 2.61.

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 2.70.

Peter Boockvar, chief market analyst at the Lindsey Group, said, "Bottom line, the auction was just ordinary, not surprising to the upside but neither to the downside."

Finishing off this week's series of long-term securities auctions, the Treasury is due to sell $13 billion worth of thirty-year bonds on Thursday.