U.S. Treasury three-year note auctions see softer-than-average demand

Recent U.S. Department of the Treasury auctions for three-year notes met with subdued overall market demand amid ongoing investor sensitivity to interest rate expectations. Reports presented differing auction sizes and yields, with one sale of $58 billion clearing at a 4.627% high yield with a 2.53X bid-to-cover ratio, tailing by 0.5 basis points against when-issued levels. Another reported sale totaled $56 billion at a 0.750% high yield with a bid-to-cover ratio of 2.33, down from October's 2.36. Looking ahead, the Treasury is scheduled to sell $39 billion in ten-year benchmark notes and $25 billion in thirty-year bonds.