Five-Year Note Auction Attracts Average Demand

(RTTNews) - On the heels of yesterday's auction of $36 billion worth of two-year notes, the Treasury Department sold $37 billion worth of five-year notes on Tuesday, attracting average demand.

The five-year note auction drew a high yield of 2.765 percent and a bid-to-cover ratio of 2.49.

The Treasury sold $36 billion worth of five-year notes last month, drawing a high yield of 2.815 percent and a bid-to-cover ratio of 2.61.

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 2.47.

On Wednesday, the Treasury Department is due to finish up this week's series of long-term securities auctions with the sale of $31 billion worth of seven-year notes.