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 Wednesday, revealing this month's sale of $70 billion worth of five-year notes attracted modestly below average demand.

The five-year note auction drew a high yield of 3.980 percent and a bid-to-cover ratio of 2.29.

Last month, the Treasury also sold $70 billion worth of five-year notes, drawing a high yield of 3.615 percent and a bid-to-cover ratio of 2.32.

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 2.36.

On Tuesday, the Treasury revealed this month's auction of $69 billion worth of two-year notes attracted below average demand.

The Treasury is due to announce the results of this month's auction of $44 billion worth of seven-year notes on Thursday.