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Five-Year Note Auction Attracts Below Average Demand

After announcing the results of the two-year note auction earlier in the day, the Treasury Department revealed later Monday that its sale of $57 billion worth of five-year notes attracted below average demand.

The five-year note auction drew a high yield of 0.397 percent and a bid-to-cover ratio of 2.38.

The Treasury sold $55 billion worth five-year notes last month, drawing a high yield of 0.330 percent and a bid-to-cover ratio of 2.38.

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 2.49.

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