The Treasury Department revealed Monday that this month’s auction of $40 billion worth of two-year notes attracted slightly above average demand, kicking off this week’s announcements of the results of its long-term securities auctions.
The two-year note auction drew a high yield of 1.601 percent and a bid-to-cover ratio of 2.63.
The Treasury also sold $40 billion worth of two-year notes last month, drawing a high yield of 1.594 percent and a bid-to-cover ratio of 2.70.
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 2.59.
Looking ahead, the Treasury is due to announce the results of its auctions of $41 billion worth of five-year notes and $32 billion worth of seven-year notes on Tuesday and Wednesday, respectively.
The material has been provided by InstaForex Company – www.instaforex.com