Headline: Strong Demand Greets U.S. 3‑Year Treasury Sale at 3.579% High Yield
Investor appetite for short-dated U.S. government debt remained firm as the Treasury sold $58 billion of 3‑year notes at a high yield of 3.579%. The auction cleared through the when‑issued level of 3.589% by 1 basis point, signaling solid demand and efficient price discovery in the front end of the yield curve.
Participation was broad-based. The bid-to-cover ratio printed at 2.85, comfortably above the six-month average of 2.58, indicating healthy oversubscription. Direct bidders took 27.3% versus a recent average of 23.9%, while indirect bidders—often a proxy for overseas demand—claimed 63.0% compared with a 62.4% average. Primary dealers were left with just 9.1%, well below the recent 13.8% norm, underscoring strong buy-side engagement.
The combination of a stop-through, above-trend coverage, and lighter dealer allocation points to resilient demand for U.S. Treasury securities amid ongoing rate recalibration. For fixed-income investors, the auction results highlight steady liquidity and continued support for front-end government bond issuance.
Key Points: – Treasury sold $58 billion in 3‑year notes at a 3.579% high yield – Cleared 1 bp through the when‑issued level of 3.589% (stop-through) – Bid-to-cover of 2.85 vs six-month average of 2.58 – Direct bidders took 27.3%; indirect bidders 63.0% – Primary dealers absorbed 9.1%, below the 13.8% recent average – Results indicate strong domestic and international demand for front-end Treasuries
