Two-Year Note Auction Attracts Average Demand

(RTTNews) - The Treasury Department sold $26 billion worth of two-year notes on Tuesday, kicking off this series of long-term securities auctions with average demand.

The two-year note auction drew a high yield of 0.648 percent and a bid-to-cover ratio of 3.40.

Last month, the Treasury also sold $26 billion worth of two-year notes, drawing a high yield of 0.540 percent and a bid-to-cover ratio of 3.30.

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 3.42.

Looking ahead, the Treasury is due to sell $35 billion worth of five-year notes on Wednesday and $29 billion worth of seven-year notes on Thursday.