Two-Year Note Auction Attracts Well Below Average Demand

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

The two-year note auction drew a high yield of 0.877 percent and a bid-to-cover ratio of 2.58.

Last month, the Treasury also sold $26 billion worth of two-year notes, drawing a high yield of 0.752 percent and a bid-to-cover ratio of 2.91.

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 3.13.

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