The U.S. Treasury’s $58 billion sale of three-year notes on Tuesday cleared at a high yield of 3.891 percent, about 0.4 basis point above the pre-auction when-issued level and down from 3.972 percent at the prior sale. Demand was slightly softer than recent norms, with a bid-to-cover ratio of 2.51 versus the six-month average of 2.61. It was the second consecutive auction to tail and the fourth in the past five, suggesting investors remain selective at current coupon levels. Indirect bidders— a group that includes foreign central banks— absorbed a customary share of the issue, while the Federal Reserve’s System Open Market Account submitted $6.9 billion in bids. Earlier in the session, the Treasury sold 52-week bills at 3.925 percent, marginally below last month’s 3.940 percent, with the Fed putting in $2.9 billion of non-competitive bids. The auctions come as investors parse mixed economic signals. Redbook’s same-store sales index showed annual growth accelerating to 5.9 percent from 4.9 percent, while broader inflation gauges and next week’s consumer-price report remain in focus for rate expectations. Despite the modest tail, the Treasury’s results indicate steady, if not robust, appetite for short-dated U.S. debt amid lingering uncertainty over the Federal Reserve’s policy path.