Two-Year Note Auction Attracts Below Average Demand

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Ahead of the Federal Reserve’s monetary policy meeting later this week, the Treasury Department announced the results of its auction of $48 billion worth of two-year notes on Monday, revealing the sale attracted below average demand.

The two-year note auction drew a high yield of 0.155 percent and a bid-to-cover ratio of 2.34.

Last month, the Treasury sold $46 billion worth of two-year notes, drawing a high yield of 0.193 percent and a bid-to-cover ratio of 2.46.

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 2.60.

The Treasury is due to announce the results of its auction of $49 billion later today, while the results of its auction of $44 billion worth of seven-year notes will be announced on Tuesday.


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