Treasury's $69 Billion Two-Year Note Auction Draws Below-Average Demand; Yield 4.708%

The Treasury Department sold $69 billion in two-year notes on Monday to slightly below-average demand, with the auction drawing a high yield of 4.708% and a bid-to-cover ratio of 2.59. The ratio trailed the 2.62 average across the ten previous two-year note auctions and the 2.63 recorded at last month's sale of the same $69 billion size, which cleared at a 4.787% high yield. Bid-to-cover measures the amount of bids submitted for each dollar of securities sold. The Treasury will announce results of this month's $70 billion five-year note and $44 billion seven-year note auctions on Tuesday and Thursday, respectively.