28.05.201911:45:00UTC+00Two-Year Note Auction Attracts Strong Demand

The Treasury Department announced the results of its auction of $40 billion worth of two-year notes on Tuesday, revealing well above average demand.

The two-year note auction drew a high yield of 2.125 percent and a bid-to-cover ratio of 2.75.

Last month, the Treasury also sold $40 billion worth of two-year notes last month, drawing a high yield of 2.355 percent and a bid-to-cover ratio of 2.51.

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 2.61.

The Treasury is due to announce the results of its auction of $41 billion worth of five-year notes at 1 pm ET and announce the results of its auction of $32 billion worth of seven-year notes on Wednesday.