The Treasury Department sold $35 billion worth of two-year notes on Tuesday, kicking off this week's series of long-term securities auctions.
The two-year note auction drew a high yield of 0.22 percent and a bid-to-cover ratio of 4.00. The high yield represents a record low for an auction.
Last month, the Treasury also sold $35 billion worth of two-year notes, drawing a high yield of 0.313 percent and a bid-to-cover ratio of 3.62.
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 3.72.
Looking ahead, the Treasury is due to sell $35 billion worth of five-year notes on Wednesday and $29 billion worth of seven-year notes on Thursday.
by RTT Staff Writer
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