U.S. Treasury Yields Hold Near 1 Month High

Benchmark U.S. Treasurys yields held near their highest levels in over a month on Tuesday after the Treasury Department auctioned $27 billion in three-year notes at a high yield of 1.066 percent, the highest yield since April 2011. The bid-to-cover ratio, an indicator of demand, was 3.17.

Foreign central banks and other indirect bidders bought 33.11 percent at the latest three-year note supply, their smallest share since June.  Large money managers, smaller bond dealers and other direct bidders purchased 20.27 percent of the three-year supply, which was higher than the 19.03 percent they bought in August.

Primary dealers or the 22 top Wall Street firms that do business directly with the Federal Reserve bought 46.63 percent of the supply, which was larger than August’s 44.77 percent.  Benchmark 10-year U.S. Treasury notes were last down 7/32 in price to yield 2.50 percent, slightly below an earlier session high of 2.51 percent, which was the highest yield since August 5. Meanwhile, U.S. 30-year Treasury bonds were down 4/32 in price to yield 3.23 percent.


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