Three-Year Treasury Auction Posts 4.627% High Yield as Demand Slips

The U.S. Treasury’s latest three-year note sale set a 4.627% high yield, down from 4.932% in October, while the bid-to-cover ratio edged lower, indicating slightly softer demand. The ratio was 2.53, compared with 2.62 at the prior sale.

The high yield was 0.005 percentage point above the 4.622% when-issued level, a market benchmark before the auction. The result follows an earlier three-year Treasury auction that set a 4.932% high yield.

Investors will watch upcoming Treasury sales, Federal Reserve communications, and inflation and employment data for further signs of changing rate expectations and demand for government debt.