After announcing the results of its auction of $38 billion worth of three-year notes on Tuesday, the Treasury Department revealed Wednesday that its auction of $27 billion worth of ten-year notes also attracted above average demand.
The ten-year note auction drew a high yield of 1.809 percent and a bid-to-cover ratio of 2.49.
Last month, the Treasury sold $24 billion worth of ten-year notes, drawing a high yield of 1.590 percent and a bid-to-cover ratio of 2.43.
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 2.42.
Looking ahead, the Treasury is due to announce the results of its auction of $19 billion worth of thirty-year bonds on Thursday.
The material has been provided by InstaForex Company – www.instaforex.com