The Treasury Department commenced this week's announcements of its long-term securities auction results by reporting robust interest in this month's two-year note auction, amounting to $69 billion. The auction achieved a high yield of 4.274% with a bid-to-cover ratio of 2.77, indicating strong demand. In comparison, last month's offering of two-year notes, also totaling $69 billion, registered a slightly lower high yield of 4.130% and a bid-to-cover ratio of 2.50.
The bid-to-cover ratio serves as an important gauge of market appetite, reflecting the number of bids received for each dollar's worth of securities available. Historically, the ten prior auctions for two-year notes recorded a high yield of 2.61.
Looking ahead, the Treasury is set to unveil the results for this month's auctions of $70 billion in five-year notes and $44 billion in seven-year notes on Tuesday and Wednesday, respectively.