Two-Year, Five-Year Note Auctions Attract Average Demand

(RTTNews) - The Treasury Department on Monday announce the results of this month's auctions of $69 billion worth of two-year notes and $70 billion worth of five-year notes, revealing the sales attracted average demand.

The two-year note auction drew a high yield of 3.504 percent and a bid-to-cover ratio of 2.59.

Last month, the Treasury also sold $69 billion worth of two-year notes, drawing a high yield of 3.571 percent and a bid-to-cover ratio of 2.51.

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 2.61.

Meanwhile, the five-year note auction drew a high yield of 3.625 percent and a bid-to-cover ratio of 2.38.

The Treasury also sold $70 billion worth of five-year notes last month, drawing a high yield of 3.710 percent and a bid-to-cover ratio of 2.34.

The ten previous five-year note auctions had an average bid-to-cover ratio of 2.37.

On Tuesday, the Treasury is due to finish off this week's series of announcements of the results of its long-term securities auctions by revealing the results of this month's sale of $44 billion worth of seven-year notes.