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 Monday revealed this month's auction of $66 billion worth of two-year notes attracted below average demand.

The two-year note auction drew a high yield of 4.595 percent and a bid-to-cover ratio of 2.62.

Last month, the Treasury sold $63 billion worth of two-year notes, drawing a high yield of 4.691 percent and bid-to-cover ratio of 2.49.

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 2.71.

Looking ahead, the Treasury is due to announce the results of this month's auctions of $67 billion worth of five-year notes and $43 billion worth of seven-year notes on Tuesday and Wednesday, respectively.