Auction of two-year bonds draws modestly above-average demand

WASHINGTON (dpa-AFX) – The Treasury Department on Thursday announced the results of its $69 billion two-year bond auction, showing that the sale drew slightly higher-than-average demand.

The two-year bond auction produced a high yield of 3.874 percent and a bid-to-cover ratio of 2.68.

Last month, the Treasury also sold $69 billion in two-year bonds with a high yield of 4.434 percent and a bid-to-cover ratio of 2.81.

The bid-to-cover ratio is a measure of demand. It indicates how many bids there are for each dollar of securities sold.

The ten previous auctions of two-year government bonds produced a high yield of 2.62.

The Treasury Department is expected to announce results from this month’s auctions of $70 billion in five-year bonds and $44 billion in seven-year bonds on Wednesday and Thursday.