Two-Year Note Auction Attracts Below Average Demand

(RTTNews) - Kicking off this week's series of announcements of the results of its long-term securities auctions, the Treasury Department on Tuesday revealed this month's auction of $69 billion worth of two-year notes attracted below average demand.

The two-year note auction drew a high yield of 3.571 percent and a bid-to-cover ratio of 2.51.

Last month, the Treasury also sold $69 billion worth of two-year notes, drawing a high yield of 3.641 percent and a bid-to-cover ratio of 2.69.

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 2.64.

The Treasury is scheduled to announce the results of this month's auctions of $70 billion worth of five-year notes and $44 billion worth of seven-year notes on Wednesday and Thursday, respectively.