The Treasury Department completed its weekly 3 and 6-month bill auctions Monday afternoon. The sales posted notably strong demand, as investors moved into secure investments amid earnings anxiety on Wall Street.
The auction for $28.0 billion worth of 3-month bills drew a high yield of 0.180 percent while posting strong demand, with the bid-to-cover ratio coming in at a level of 3.39. The security is scheduled to mature July 16th, 2009.
The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.
Previously, the government sold $30.0 billion worth of 3-months bills, with the sale drawing a yield of 0.200 percent. The auction posted a bid-to-cover ratio of 3.43.
Earlier this afternoon, the Treasury Department sold $27.0 billion worth of 6-month bills, with the auction drawing a high-yield of 0.370 percent and a bid-to-over ratio of 3.73. The bond is set to mature October 15th, 2009.
The previous auction for comparable securities took place early last week, when the government sold $28.0 billion worth of 6-month bills. The auction drew a yield of 0.400 percent, while the bid-to-cover ratio came in at a level of 3.33.
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