Two-Year Note Auction Attracts Below Average Demand
The Treasury Department kicked off this week’s series of announcements of the results of its long-term securities auctions on Tuesday, revealing its sale of $60 billion worth of two-year notes attracted below average demand.
The two-year note auction drew a high yield of 0.119 percent and a bid-to-cover ratio of 2.44.
Last month, the Treasury also sold $60 billion worth of two-year notes, drawing a high yield of 0.125 percent and a bid-to-cover ratio of 2.67.
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.
Looking ahead, the Treasury is due to announce the results of its auction of $61 billion worth of five-year notes on Wednesday and the results of its auction of $62 billion worth of seven-year notes on Thursday.