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Five-Year Note Auction Attracts Average Demand

Following yesterday's sale of $26 billion worth of two-year notes, the Treasury Department sold $34 billion worth of five-year notes on Wednesday, attracting average demand.

The five-year note auction drew a high yield of 2.434 percent and a bid-to-cover ratio of 2.48.

Last month, the Treasury also sold $34 billion worth of five-year notes, drawing a high yield of 2.245 percent and a bid-to-cover ratio of 2.36.

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.

The Treasury is due to finish off this week's series of long-term securities auctions with the sale of $28 billion worth of seven-year notes on Thursday.

by RTTNews Staff Writer

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