Following yesterday’s auction of $27 billion worth of three-year notes, 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 2.535 percent and a bid-to-cover ratio of 2.71.
Last month, the Treasury sold $24 billion worth of ten-year notes, drawing a high yield of 2.439 percent and a bid-to-cover ratio of 2.83.
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 2.71.
Peter Boockvar, managing director at the Lindsey Group, said, “After an uneventful 3-year note auction yesterday, the benchmark 10-year auction today was as well.”
“The yield of 2.535% was exactly in line with where the when issued was trading and the bid to cover of 2.71 was right in line with the previous 12 month average,” he added.
The Treasury is due to finish off this week’s series of long-term securities auctions with the sale of $13 billion worth of thirty-year bonds on Thursday.
The material has been provided by InstaForex Company – www.instaforex.com