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

The Treasury Department announced the results of this month's auction of $42 billion worth of two-year notes on Monday, revealing the sale attracted above average demand.

The two-year note auction drew a high yield of 4.823 percent and a bid-to-cover ratio of 2.78.

Last month, the Treasury also sold $42 billion worth of two-year notes, drawing a high yield of 4.670 percent and a bid-to-cover ratio of 2.86.

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 2.69.

The Treasury is due to announce the results of this month's auctions of $43 billion worth of five-year notes and $35 billion worth of seven-year notes on Tuesday and Thursday, respectively.