Two-Year Note Auction Attracts Well Below Average Demand

(RTTNews) - Ahead of the Christmas Day holiday on Tuesday, the Treasury Department sold $40 billion worth of two-year notes on Monday, attracting well below average demand.

The two-year note auction drew a high yield of 2.619 percent and a bid-to-cover ratio of 2.31.

The Treasury sold $39 billion worth of two-year notes last month, drawing a high yield of 2.836 percent and a bid-to-cover ratio of 2.65.

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 2.74.

Looking ahead, the Treasury is due to sell $41 billion worth of five-year notes on Wednesday and $32 billion worth of seven-year notes on Thursday.