Treasury Auctions $27 Billion Worth Of Three-Year Notes

(RTTNews) - The Treasury Department sold $27 billion worth of three-year notes on Tuesday, kicking off this week's series of long-term securities auctions.

The three-year note auction drew a high yield of 0.994 percent and a bid-to-cover ratio of 3.42.

Last month, the Treasury also sold $27 billion worth of three-year notes, drawing a high yield of 1.066 percent and a bid-to-cover ratio of 3.17.

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 three-year note auctions had an average bid-to-cover ratio of 3.32.

Peter Boockvar, managing director at the Lindsey Group, said, "Under the cross currents of a challenging global growth environment and a U.S. labor market that continues to get tighter and heightens the debate of what comes next from the Fed, the 3-year note auction was pretty good."

Looking ahead, the Treasury is due to sell $21 billion worth of ten-year notes on Wednesday and $13 billion worth of thirty-year bonds on Thursday.