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

(RTTNews) - The Treasury Department announced the results of this month's auctions of $63 billion worth of two-year notes and $64 billion worth of five-year notes on Monday, revealing the sales attracted below average demand.

The two-year note auction drew a high yield of 4.691 percent and a bid-to-cover ratio of 2.49.

Last month, the Treasury sold $60 billion worth of two-year notes, drawing a high yield of 4.365 percent and bid-to-cover ratio of 2.57.

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.

Meanwhile, the five-year note auction drew a high yield of 4.320 percent and a bid-to-cover ratio of 2.41

The Treasury sold $61 billion worth of five-year notes last month, drawing a high yield of 4.055 percent and a bid-to-cover ratio of 2.31.

The ten previous five-year note auctions had an average bid-to-cover ratio of 2.49.

On Tuesday, the Treasury is due to announce the results of this month's auction of $42 billion worth of seven-year notes.