Today the Government will sell $17.75 billion in two-year notes.

More than $12 billion in two-year notes were sold that day.

The auction of $15 billion in new two-year notes also did not go too well.

Today, the market will turn its attention to the Government's auction of $17.25 billion in new two-year notes.

The remaining $650 million were sold as 6.25 percent two-year notes.

The spread over the two-year note stood at a record 3.67 percentage points.

Market participants said that interest from foreign investors in the two-year notes was light.

The price of the two-year note rose 2/32, to 100.

"The two-year notes will have little problem being absorbed by the market," he said.

On Wednesday, $9 billion worth of two-year notes will be sold.