The US Treasury's $58 billion 3-year note auction produced an award yield of 4.932%, below the 4.934% when-issued level at the bidding deadline.
The short end of the yield curve showed little reaction to the auction.
The overall result of the auction was solid, with the award yield coming in slightly below the when-issued level, driven mainly by demand from direct bidders, whose allotment share was notably above recent averages.
Primary dealers were allotted 10.7%, slightly below the previous auction and also below the recent average of 12.7%; direct bidders received 31.7%, far above the recent average of 21.5%, while the indirect bidder allotment fell to 57.6%, below the 65.9% average.
The bid-to-cover ratio was 2.62 times, slightly below the 2.65 times average of the past six auctions.