Moderate Demand for US Treasury's Three-Year Note Auction

The United States Department of the Treasury announced on Tuesday that its three-year note auction, totaling $58 billion, saw moderate demand. The high yield settled at 3.669%, marking a significant moment for investors and market watchers alike.

Bid-to-Cover Ratio and Investor Participation

The auction's bid-to-cover ratio was reported at 2.53, showing a slight increase from July's 2.51 but still below the average of 2.61 observed in the ten previous auctions. A total of $146.3 billion was bid for the $58 billion in available securities, highlighting the competitive nature of the auction.

Breakdown of Accepted Bids

Primary dealers accounted for $10.3 billion of the accepted bids, approximately 18% of the total. Meanwhile, non-required bidders, including direct and indirect participants, secured $47.5 billion, or about 82%, demonstrating strong interest from a broad range of investors.

Market Reaction

Following the auction's conclusion, the yield on the three-year Treasury note experienced a slight increase, rising by 3.1 basis points to 3.679%, indicating a cautious optimism among investors.