Treasury Two-Year Note Sale Rated ‘3’ by Five Primary Dealers

The Treasury Department’s $27 billion sale of two-year notes was rated a ‘3’ by five of the Federal Reserve’s 22 primary dealers.

The characterization is based on a scale of one through five, with one being a failed auction and five judging the results as outstanding. Two would denote a poor auction, three an average sale and four would indicate a good offering, according to a Bloomberg News survey of the banks and brokerage firms obligated to bid on Treasury offerings.

The securities yielded 0.703 percent, matching the average forecast of eight primary dealers, and the highest since 2011.

The bid-to-cover ratio, which gauges demand by comparing the amount bid with the amount offered, was 3.21, compared with an average of 3.4 at the past 10 sales.

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