FX.co ★ Two-Year Note Auction Attracts Modestly Above Average Demand

Kicking off this week's series of announcements of the results of its long-term securities auctions, the Treasury Department on Tuesday revealed this month's auction of $47 billion worth of two-year notes attracted modestly above average demand.

The two-year note auction drew a high yield of 2.519 percent and a bid-to-cover ratio of 2.61.

The Treasury sold $48 billion worth of two-year notes last month, drawing a high yield of 2.585 percent and a bid-to-cover ratio of 2.74.

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 2.57.

The Treasury is due to announce the results of this month's auction of $48 billion worth of five-year notes on Wednesday and the results of this month's auction of $42 billion worth of seven-year notes on Thursday.