Tue Nov 05 17:13:36 UTC 2024: ## US Treasury Faces Weak Demand for 3-Year Notes in Latest Auction
**WASHINGTON, D.C.** – The US Treasury Department encountered weak demand for its latest auction of $58 billion in 3-year notes, indicating a potential shift in investor sentiment. The auction saw the highest yield accepted by investors rise to 4.152%, exceeding the six-auction average of 4.132% and surpassing the yield seen pre-bidding deadline by 0.9 basis points.
This outcome suggests the government had to offer higher yields to entice investors, highlighting a less than ideal auction.
Historically, 3-year note auctions have performed well in election years, with yields typically stopping through, meaning the government sells the notes at a lower yield than predicted.
However, this year, the auction results could be attributed to investor hesitancy, with upcoming events like the election and a Federal Reserve monetary policy decision keeping investors on the sidelines.
Despite rising yields on 3-year notes since September, the heightened uncertainty surrounding these upcoming events may have led to a decreased appetite for government debt.
First Piper 