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

(RTTNews) - The Treasury Department announced the results of this month's auctions of $54 billion worth of two-year notes and $55 billion worth of five-year notes on Monday, with both sales attracting below average demand.

The two-year note auction drew a high yield of 4.887 percent and a bid-to-cover ratio of 2.54.

Last month, the Treasury sold $51 billion worth of two-year notes, drawing a high yield of 5.055 percent and a bid-to-cover ratio of 2.64.

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 2.75.

Meanwhile, the five-year note auction drew a high yield of 4.420 percent and a bid-to-cover ratio of 2.46.

The Treasury sold $52 billion worth of five-year notes last month, drawing a high yield of 4.899 percent and a bid-to-cover ratio of 2.36.

The ten previous five-year note auctions had an average bid-to-cover ratio of 2.52.

On Tuesday, the Treasury is scheduled to announce the results of this month's auction of $39 billion worth of seven-year notes.