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

(RTTNews) - The Treasury Department announced the results of this month's auctions of $69 billion worth of two-year notes and $70 billion worth of five-year notes on Tuesday, revealing the sales attracted well below average demand.

The two-year note auction drew a high yield of 4.917 percent and a bid-to-cover ratio of 2.41.

Last month, the Treasury also sold $69 billion worth of two-year notes, drawing a high yield of 4.898 percent and a bid-to-cover ratio of 2.66.

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 2.67.

Meanwhile, the five-year note auction drew a high yield of 4.553 percent and a bid-to-cover ratio of 2.30.

The Treasury also sold $70 billion worth of five-year notes last month, drawing a high yield of 4.659 percent and a bid-to-cover ratio of 2.39.

The ten previous five-year note auctions had an average bid-to-cover ratio of 2.45.

On Wednesday, the Treasury is scheduled to announce the results of this month's auction of $44 billion worth of seven-year notes.