Treasury Sells 3-Year Notes at Lowest Yield Ever

Fear continues to permeate markets as evidenced by today's remarkable 3-year Treasury note auction.
The Treasury Department sold $35 billion in 3-year notes at a yield of 1.055%., The bid to cover ratio was a strong 3.2, compared to an average of 3.18 at the last four sales of 3-year notes, which were all for larger amounts.

Indirect bidders, a group which includes foreign central banks, boughtn 40.6%, versus an average of 50.4% at recent sales. Direct bidders, which includes domestic money managers, purchased another 14.3%,
compared to 13.5% on average.