US Treasury auction goes well

The US Treasury sold USD 34 bln of 3-year notes at a yield of 1.489%, the highest since
November 2008. The bid/cover ratio was 2.26, down from a 2.67 ratio at the Treasury’s last sale of 3Y notes on Feb 10th.
BNP Paribas analysts say the 3-year Treasury auction went well, but the real test will come Thursday when USD18 bln in 10- year bond and Friday when the USD11 bln 30-year bond auction will be due. Disappointing auction results could take bond yields up, disappoint equity investors putting the USD under pressure as a result.