The Treasury Department sold $40 billion in 3-year notes at a yield of 1.490% on Tuesday. The bidding was solid and the amount matched last month’s auction.
- Bid To Cover 2.98 times more debt than was being offered compared to an average of 3.02 in the last three sales of the securities
- Indirects 38% of the sale vs Avg. 59.3%
- Directs purchased a record 23.4% vs Avg 7.1%
- Yields 1.490% vs. Exp. 1.513%
- Alloted at high 79.20%
Today’s auction is part of this week’s $84 billion in government debt supply.