The new three-year note appeared to be in less demand.

The new three-year note was offered at a price to yield 5.65 percent, down 4 basis points from the previous day.

The auction of $15.5 billion in three-year notes is unchanged.

The sales begin tomorrow, when the Treasury will auction $10 billion of three-year notes.

Today the elections and the auction of the three-year note are likely to capture the market's attention.

But the price of the three-year note was unchanged, as the yield remained at 4.54 percent.

The three-year notes do not count as capital under banking regulations.

But later in the afternoon, after the release of the department store data, the three-year note rallied a little.

The three-year note, he said "is a good place to hide."

Demand at yesterday's sale of three-year notes was better than average.