Two-Year Note Auction Attracts Average Demand

(RTTNews) - The Treasury Department kicked off this week's series of long-term securities auctions with the sale of $26 billion worth of two-year notes on Monday, attracting average demand.

The two-year note auction drew a high yield of 1.085 percent and a bid-to-cover ratio of 2.73.

Last month, the Treasury also sold $26 billion worth of two-year notes, drawing a high yield of 0.855 percent and a bid-to-cover ratio of 2.53.

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 2.73.

Looking ahead, the Treasury is due to auction $34 billion worth of five-year notes on Tuesday and $28 billion worth of seven-year notes on Wednesday.