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Five-Year Note Auction Attracts Modestly Above Average Demand

Continuing this week's series of announcements of the results of its long-term securities auctions, the Treasury Department revealed Wednesday that this month's auction of $61 billion worth of five-year notes attracted modestly above average demand.

The five-year note auction drew a high yield of 0.788 percent and a bid-to-cover ratio of 2.49.

The Treasury also sold $61 billion worth of five-year notes last month, drawing a high yield of 0.849 percent and a bid-to-cover ratio of 2.31.

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 2.40.

The Treasury revealed on Tuesday that this month's auction of $60 billion worth of two-year notes also attracted above average demand.

On Thursday, the Treasury is scheduled to announce the results of this month's auction of $62 billion worth of seven-year notes.

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