Two-Year Note Auction Attracts Below Average Demand

(RTTNews) - The Treasury Department announced the results of this month's auction of $69 billion worth of two-year notes on Tuesday, revealing the sale attracted below average demand.

The two-year note auction drew a high yield of 3.795 percent and a bid-to-cover ratio of 2.52.

Last month, the Treasury also sold $69 billion worth of two-year notes, drawing a high yield of 3.984 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 drew a high yield of 2.67.

The Treasury is due to announce the results of this month's auctions of $70 billion worth of five-year notes and $44 billion worth of seven-year notes on Wednesday and Thursday, respectively.