Kicking off this week’s series of long-term securities auctions, the Treasury Department sold $38 billion worth of two-year notes on Tuesday, attracting below average demand.
The two-year note auction drew a high yield of 2.880 percent and a bit-to-cover ratio of 2.67.
Last month, the Treasury sold $37 billion worth of two-year notes, drawing a high yield of 2.829 percent and a bid-to-cover ratio of 2.44.
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 2.78.
Looking ahead, the Treasury is due to sell $39 billion worth of five-year notes on Wednesday and $31 billion worth of seven-year notes on Thursday.