Five-Year Note Auction Attracts Average Demand

(RTTNews) - Following yesterday's auction of $26 billion worth of two-year notes, the Treasury Department continued this week's series of long-term securities auctions with the sale of $34 billion worth of five-year notes on Tuesday.

The five-year note auction drew a high yield of 1.410 percent and a bid-to-cover ratio of 2.41.

Last month, the Treasury also sold $34 billion worth of five-year notes, drawing a high yield of 1.335 percent and a bid-to-cover ratio of 2.38.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

The ten previous five-year note auctions had an average bid-to-cover ratio of 2.44.

On Thursday, the Treasury is due to finishing off this week's series of long-term securities auctions with the sale of $28 billion worth of seven-year notes.