NEW YORK, June 11 (Reuters) - The U.S. Treasury’s auction of $38 billion worth of new three-year notes was met with strong demand on Tuesday, as indirect bidders took the largest portion of the offering since December 2017.
The bid-to-cover ratio for Tuesday’s offering, an indication of overall demand, was 2.62 - the highest since September 2018. Indirect bidders, a proxy for foreign buyers, took 56.6% of the supply, while direct bidders took 13.37% and primary dealers took 30.02%.
The three-year note yield dipped immediately following the auction as prices rose, retracing its rise earlier on Tuesday. It was last up 0.8 basis point at 1.879%. (Reporting by Kate Duguid, editing by G Crosse)