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Five-Year Note Auction Attracts Above Average Demand

A day after reporting strong demand for this month's two-year note auction, the Treasury Department on Tuesday revealed this month's auction of $55 billion worth of five-year notes also attracted above average demand.

The five-year note auction drew a high yield of 1.533 percent and a bid-to-cover ratio of 2.50.

Last month, the Treasury sold $57 billion worth of five-year notes, drawing a high yield of 1.263 percent and a bid-to-cover ratio of 2.41.

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 2.39.

Following the Federal Reserve's monetary policy announcement on Wednesday, the Treasury is due to announce the results of this month's auction of $53 billion worth of seven-year notes on Thursday.

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