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Five-Year Note Auction Attracts Below Average Demand

Following yesterday's auction of $35 billion worth of two-year notes, the Treasury Department sold $35 billion worth of five-year notes on Tuesday, attracting below average demand.

The five-year note auction drew a high yield of 0.769 percent and a bid-to-cover ratio of 2.72.

Last month, the Treasury also sold $35 billion worth of five-year notes, drawing a high yield of 0.641 percent and a bid-to-cover ratio of 2.89.

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 2.87.

The Treasury is also due to auction $29 billion worth of seven-year notes on Wednesday.

by RTT Staff Writer

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