Two-Year Note Auction Attracts Average Demand

(RTTNews) - Kicking off this week's series of long-term securities auctions, the Treasury Department sold $32 billion worth of two-year notes on Tuesday, attracting average demand.

The two-year note auction drew a high yield of 0.380 percent and a bid-to-cover ratio of 3.30.

Last month, the Treasury also sold $32 billion worth of two-year note, drawing a high yield of 0.345 percent and a bid-to-cover ratio of 3.77.

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 3.30.

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