Analysts said retail demand was good, but that the total number of bids was down slightly.

"There was a very strong blend of institutional and retail demand," one investment banker involved in the transaction said.

But at the moment there does not seem to be any clear sign of overwhelming retail demand.

Also, reports of an improvement in the city's budget situation may have contributed to solid retail demand, he said.

But with inflation remaining tame, retail demand was low.

"That's because the Street is long securities and retail demand just isn't there."

"There was strong institutional and retail demand for these securities."

We have seen a good amount of domestic retail demand for Treasury paper all week.

Analysts said the drop suggested that retail demand remained weak at best.

This year, retail demand has been so strong that customers are waiting four to six weeks for the models and colors of their choice.