Two-Year Note Auction Attracts Below Average Demand

(RTTNews) - The Treasury Department kicked off this week's series of announcements of the results of its long-term securities auctions on Tuesday, revealing this month's sale of $60 billion worth of two-year notes attracted below average demand.

The two-year note auction drew a high yield of 4.365 percent and a bid-to-cover ratio of 2.57.

Last month, the Treasury sold $57 billion worth of two-year notes, drawing a high yield of 4.314 percent and a bid-to-cover ratio of 2.68.

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 2.72.

The Treasury is due to announce the results of this month's auctions of $61 billion worth of five-year notes and $41 billion worth of seven-year notes on Wednesday and Thursday, respectively.