Five-Year Note Auction Attracts Modestly Below Average Demand

(RTTNews) - The Treasury Department continued this week's series of announcements of the results of its long-term securities auctions on Tuesday, revealing this month's auction of $67 billion worth of five-year notes attracted modestly below average demand.

The five-year note auction drew a high yield of 4.235 percent and a bid-to-cover ratio of 2.41.

The Treasury sold $64 billion worth of five-year notes last month, drawing a high yield of 4.320 percent and a bid-to-cover ratio of 2.41.

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 2.48.

On Tuesday, the Treasury revealed this month's auction of $66 billion worth of two-year notes also attracted below average demand.

The Treasury is due to announce the results of this month's auction of $43 billion worth of seven-year notes on Wednesday.