FX.co ★ Two-Year Note Auction Attracts 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 this month's sale of $48 billion worth of two-year notes attracted average demand.

The two-year note auction drew a high yield of 5.085 percent and a bid-to-cover ratio of 2.73.

Last month, the Treasury sold $45 billion worth of two-year notes, drawing a high yield of 5.024 percent and a bid-to-cover ratio of 2.94.

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 2.75.

The Treasury is due to announce the results of this month's auctions of $49 billion worth of five-year notes and $37 billion worth of seven-year notes on Wednesday and Thursday, respectively.