Kicking off this week’s series of announcements of the results of its long-term securities auctions, the Treasury Department revealed Tuesday that this month’s auction of $60 billion worth of two-year notes attracted above average demand.
The two-year note auction drew a high yield of 0.481 percent and a bid-to-cover ratio of 2.69.
Last month, the Treasury also sold $60 billion worth of two-year notes, drawing a high yield of 0.310 percent and a bid-to-cover ratio of 2.28.
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 2.51.
Looking ahead, the Treasury is due to announce the results of this month’s auctions of $61 billion worth of five-year notes and $62 billion of seven-year notes on Wednesday and Thursday, respectively.