Three-year Treasury Auction Sees Strong Demand From Foreign Central Banks
A Tuesday auction of three-year U.S. Treasury notes saw high demand from indirect bidders, a group that includes foreign central banks. Indirect bidders received 42% of the notes at auction, compared to an average of 30%. The yield at auction was 1.066%, 0.4 basis point higher than the three-year yield in the minutes before the auction. CRT Capital Group's David Ader described overall demand as "firm" and said that trading volume for Treasurys was "stellar" going into the auction. Treasury yields have been falling Tuesday on a global selloff in equities. The three-year note yield was down 2.2 basis points on the day to 1.046% after the auction.
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