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Five-Year Note Auction Attracts Average Demand

The Treasury Department continued this week's series of announcements of the results of its long-term securities auctions on Wednesday, revealing this month's auction of $48 billion worth of five-year notes attracted average demand.

The five-year note auction drew a high yield of 2.736 percent and a bid-to-cover ratio of 2.44

Last month, the Treasury sold $49 billion worth of five-year notes, drawing a high yield of 2.785 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 two-year note auctions had an average bid-to-cover ratio of 2.43.

On Tuesday, the Treasury revealed this month's auction of $47 billion worth of two-year notes attracted modestly above average demand.

The Treasury is due to announce the results of this month's auction of $42 billion worth of seven-year notes on Thursday.

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