U.S. Debt Auctions Gain Fewest Bids Since ’09 for Shorter Notes
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The Treasury’s $93 billion of note auctions this week attracted the least demand at sales of the series since July 2009 amid the end of Federal Reserve bond-buying and the lowest yields since May.
The bid-to-cover ratio, which gauges demand by comparing total bids with the amount of securities offered, on the two-, five- and seven-year notes was 2.61 per dollar of debt sold, down from 2.85 per dollar for debt sold last month, according to Treasury data compiled by Bloomberg. Shorter-term Treasuries have underperformed longer-term debt this year as the central bank’s tapering of stimulus and increases in U.S. employment have led to bets the Fed will raise borrowing costs next year.