Monday morning, the Treasury Department revealed the details of its monthly ten and three-year note auctions scheduled to take place later this week.
The government announced that it would sell $18.0 billion worth of ten-year notes, with the bond set to mature February 15th, 2019. The auction is set to take place at 11:30 a.m. ET on Thursday.
Traders will be focused on the results of the sale, as the ten-year note is known as a benchmark security in the bond market.
The previous auction took place early last month, when the Treasury sold $18.0 billion worth of the ten-year security. The auction posted a high yield of 3.681 percent, while drawing modest demand, with the bid-to-cover ratio coming in at a level of 2.14.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
In relation to the standard ten-year note, traders will also pay attention to Tuesday's sale of $6.0 billion in 10-year inflation immune treasuries, also called TIPS.
The ten-year TIPS auction is closely watched, as the spread between the security and the regular ten-year note will give an indication of near-term inflation.
Meanwhile, the Treasury also announced that it would auction $35.0 billion of three-year notes, scheduled to mature April 15th, 2012. The sale will take place at 1 p.m. ET on Wednesday.
The government sold $34.0 billion worth of the security early last month, drawing a high yield of 1.489 percent and posting moderate demand, with the bid-to-cover ratio coming in at 2.26.
The government also announced details of a weekly short-term security auction, scheduled to take place Tuesday at 11:30 a.m. ET. The sale will be for $28.0 billion worth of 4-week bills, set to mature May 7th, 2009.
The previous sale of the bills took place early last week, when $34.0 billion worth of the securities were sold. The auction drew a high yield of 0.170 and posted modest demand, with the bid-to-cover ratio coming in at 2.55.
Later today, the Treasury is scheduled to conduct its weekly short-term auctions of 3 and 6-months bills.
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