Five-Year Note Auction Attracts Below Average Demand

(RTTNews) - Continuing this week's series of long-term securities auctions, the Treasury Department sold $41 billion worth of five-year notes on Wednesday, attracting below average demand.

The five-year note auction drew a high yield of 2.652 percent and a bid-to-cover ratio of 2.09.

Last month, the Treasury sold $40 billion worth of five-year notes, drawing a high yield of 2.880 percent and a bid-to-cover ratio of 2.49.

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.

Looking ahead, the Treasury is due finish off this week's series of long-term securities auctions with the sale of $32 billion worth of seven-year notes on Thursday.