US Treasury $58B of 3YR notes auction tails 0.2% despite weaker demand

Investing.com -- The U.S. government sold $58 billion of 3-year notes on Tuesday at a lower-than-expected yield even as demand softened.

The notes were awarded at 3.810%, just below the pre-sale, or when-issue, rate of 3.812%, and well below 4.399% high seen in the prior auction.

In a sign of a softer demand, the bid to cover ratio for the auction fell to 2.55 from 2.67 seen in the prior auction.

Direct bidders accounted for 13.70% and indirect bidders 30.4% of the bid, with dealers making up 55.9%

The 3-year notes were trading at 3.841%, up 13 basis points.

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