The U.S. Treasury auctioned off $32 billion in 3-year Treasury notes today at a record low yield of 0.327%. The bid-to-cover ratio was 3.36, lower than the 3.71 average over the last four auctions.
Sales to direct bidders, which includes domestic money managers, comprised 24.9% of purchases, while indirect bidders, which includes foreign central banks, bought 21.9% of the notes on sale. The average for direct bidders has been 16.7%, while the average for indirect bidders has been 30.1%.
With more big banks charging customers to hold safe-haven currencies like Swiss francs and Danish kroner, even the low coupon on Treasuries looks good. The dollar lost ground to the euro earlier today as the Fed’s Open Market Committee opened its 2-day meeting, where most observers expect the U.S. central bank to keep doing what it’s doing. That should have the effect of keeping Treasury yields down, which is what the market expects and which is probably what was reflected in today’s sales.
Paul Ausick
The Modern Investment App For a Richer Tomorrow (Sponsored)
Robinhood set out to democratize investing to individuals, and it’s not slowing down. The app makes it possible to buy and sell stocks, mutual funds, trade options, and even cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH).
With FDIC insurance ,an award winning design, and benefits like IRAs and more, Robinhood could be your path to a richer tomorrow.
Sign up today — click here to start your journey.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.