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Five-Year Note Auction Attracts Slightly Above Average Demand

A day after revealing average demand for this month's two-year note auction, the Treasury Department announced Tuesday that this month's auction of $46 billion worth of five-year notes attracted slightly above average demand.

The five-year note auction drew a high yield of 2.860 percent and a bid-to-cover ratio of 2.46.

Last month, the Treasury sold $47 billion worth of five-year notes, drawing a high yield of 3.271 percent and a bid-to-cover ratio of 2.28.

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 2.43.

The Treasury is due to announce the results of this month's auction of $38 billion worth of seven-year notes on Thursday.

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