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Two-Year Note Auction Attracts Slightly Above Average Demand

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.

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