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Two-Year, Five-Year Note Auctions Attract Mixed Demand

The Treasury Department on Monday announced the results of this month's auctions of $42 billion worth of two-year notes and $43 billion worth of five-year notes.

The results revealed the two-year note auction attracted slightly above average demand, while the five-year note auction attracted slightly below average demand.

The two-year note auction drew a high yield of 4.505 percent and a bid-to-cover ratio of 2.64.

Last month, the Treasury also sold $42 billion worth of two-year notes, drawing a high yield of 4.460 percent and a bid-to-cover ratio of 2.59.

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.

Meanwhile, the five-year note auction drew a high yield of 3.974 percent and a bid-to-cover ratio of 2.39.

The Treasury also sold $43 billion worth of five-year notes last month, drawing a high yield of 4.192 percent and a bid-to-cover ratio of 2.48.

The ten previous five-year note auctions had an average bid-to-cover ratio of 2.42.

On Tuesday, the Treasury is due to announce the results of this month's auction of $35 billion worth of seven-year notes.

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