Treasury's $58 billion auction of 3-year notes is met with weak...

Treasury's $58 billion auction of 3-year notes is met with weak demand

"A sale of $58 billion in 3-year Treasury notes came in worse than expected Tuesday afternoon.

The auction tailed by 2 basis points and the bid-to-cover ratio was lower than in the previous auction of that maturity, according to Tom di Galoma, co-head of global rates trading for BTIG in New York.

"Generally, outright bids were weaker and accounts were being defensive on this, knowing [the March consumer-price index report] is due tomorrow and that could change the outlook for the Fed," di Galoma said.

Yields on everything from 1-month T-bills through the 30-year Treasury bond remained broadly lower on Tuesday, immediately after the auction results came in."