Kicking off this week’s series of long-term securities auctions, the Treasury Department sold $28 billion worth of two-year notes on Tuesday, attracting below average demand.
The two-year note auction drew a high yield of 2.255 percent and a bid-to-cover ratio of 2.72.
Last month, the Treasury sold $26 billion worth of two-year notes, drawing a high yield of 2.066 percent and a bid-to-cover ratio of 3.22.
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 2.88.
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.