Econoday Report: 10-Yr Note Auction August 12, 2009

2009 Economic Calendar

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10-Yr Note Auction

Released on 8/12/2009 1:00:00 PM For 8/12/2009 1:00:00 PM

Auction Results
Bid/Cover	2.49
Coupon Rate	3.625%
Total Amount	$23 B
Yield Awarded	3.734%

Highlights
A $23 billion auction size appears to have been a little too high as coverage for today's 10-year note auction was soft at 2.49. Bidding was sloppy with the high yield of 3.734 percent about 2-1/2 basis points above the 1:00 ET bid. Demand for Treasuries fell in reaction to the results. The Treasury auctions $15 billion in 30-year bonds tomorrow.

Definition
Treasury notes are sold at regularly scheduled public auctions. The competitive bids at these auctions determine the interest rate paid on each Treasury note issue. A group of 17 securities dealers (as of June 18, 2009), known as primary dealers, are authorized and obligated to submit competitive tenders at Treasury auctions. Dealers can hold, resell, or trade the securities with other firms. The Treasury announces the amount, date and time of the 10-year note auction monthly. The 10-year notes are announced around the first week of the month and then auctioned the following week. Generally, the 10-year notes are issued (settled) on the 15th of the month, unless it falls on a weekend or holiday, and then they are issued on the next business day. (Department of the Treasury) Why Investors Care

Data Source: Haver Analytics

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