Kicking off the holiday week’s announcements of the results of its long-term securities auctions, the Treasury Department revealed Monday that this month’s auction of $40 billion worth of two-year notes attracted below average demand.
The two-year note auction drew a high yield of 1.653 percent and a bid-to-cover ratio of 2.30.
Last month, the Treasury also sold $40 billion worth of two-year notes, drawing a high yield of 1.601 percent and a bid-to-cover ratio of 2.63.
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 auctions of $41 billion worth of five-year notes on Tuesday and the results of its auction of $32 billion worth of seven-year notes on Thursday.
The material has been provided by InstaForex Company – www.instaforex.com