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Five-Year Note Auction Attracts Below Average Demand

Following yesterday's auction of $28 billion worth of two-year notes, the Treasury Department sold $35 billion worth of five-year notes on Wednesday, attracting below average demand,

The five-year note auction drew a high yield of 2.658 percent and a bid-to-cover ratio of 2.44.

The Treasury sold $34 billion worth of five-year notes last month, drawing a high yield of 2.434 percent and a bid-to-cover ratio of 2.48.

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 2.71.

Looking ahead, the Treasury is due to sell $29 billion worth of seven-year notes on Thursday.

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