Five-Year Note Auction Attracts Average Demand

(RTTNews) - A day after reporting modestly above average demand this month's auction of $69 billion worth of two-year notes, the Treasury Department on Wednesday revealed this month's auction of $70 billion worth of five-year notes attracted average demand.

The five-year note auction drew a high yield of 3.645 percent and a bid-to-cover ratio of 2.41.

The Treasury also sold $70 billion worth of five-year notes last month, drawing a high yield of 4.121 percent and a bid-to-cover ratio of 2.40.

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 2.39.

On Thursday, the Treasury is due to finish off this week's series of announcements of the results of its long-term securities auction with the reveal of the results of this month's auction of $44 billion worth of seven-year notes.