Two-Year Note Auction Attracts Modestly Below Average Demand

(RTTNews) - The Treasury Department announced the results of this month's auction of $44 billion worth of two-year notes on Monday, revealing the sale attracted modestly below average demand.

The two-year note auction drew a high yield of 4.290 percent and a bid-to-cover ratio of 2.51.

Last month, the Treasury also sold $44 billion worth of two-year notes, drawing a high yield of 3.307 percent and a 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 2.58.

Looking ahead, the Treasury is due to announce the results of this month's auctions of $44 billion worth of five-year notes and $36 billion worth of seven-year notes on Tuesday and Wednesday, respectively.