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Five-Year Note Auction Attracts Average Demand

Following yesterday's sale of $39 billion worth of two-year notes, the Treasury Department sold $40 billion worth of five-year notes on Tuesday, attracting average demand.

The five-year note auction drew a high yield of 2.880 percent and a bid-to-cover ratio of 2.49.

The Treasury sold $39 billion worth of five-year notes last month, drawing a high yield of 2.977 percent and a bid-to-cover ratio of 2.30.

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 2.46.

On Wednesday, the Treasury is due to finish off this week's series of long-term securities auctions with the sale of $32 billion worth of seven-year notes.

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