Two-Year Note Auction Attracts Above Average Demand

(RTTNews) - The Treasury Department announced the results of this month's auction of $52 billion worth of two-year notes on Tuesday, revealing the sale attracted above average demand.

The two-year note auction drew a high yield of 1.553 percent and a bid-to-cover ratio of 2.64.

Last month, the Treasury sold $54 billion worth of two-year notes, drawing a high yield of 0.990 percent and a bid-to-cover ratio of 2.81.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

The ten previous two-year note auctions had an average bid-to-cover ratio of 2.54.

Looking ahead, the Treasury is due to announce the results of this month's auctions of $53 billion worth of five-year notes and $50 billion worth of seven-year notes on Wednesday and Thursday, respectively.