Treasury Auction Of 3-year Notes Generates Strong Demand

A Treasury auction of $26 billion in three-year notes generated strong demand Tuesday. The yield on the three-year notes [s:3_year] sold at auction was 1.050%, half a basis point lower than the three-year yield at the time of the auction, a sign of high market demand. The ratio of bids received to bids accepted was 3.34, compared with an average of 3.29 from the last four three-year auctions. Indirect bidders, a group that includes foreign central banks, took home 48.9% of the bonds, compared with 40% on average. Treasury yields fell after the auction. Yields move inversely to prices, rising as they fall.