Five-Year Note Auction Attracts Above Average Demand

(RTTNews) - The Treasury Department continued this week's series of announcements of the results of its long-term securities auctions on Tuesday, revealing this month's sale of $43 billion worth of five-year notes attracted above average demand.

The five-year note auction drew a high yield of 4.019 percent and a bid-to-cover ratio of 2.52.

Last month, the Treasury also sold $43 billion worth of five-year notes, drawing a high yield of 3.749 percent and a bid-to-cover ratio of 2.58.

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 2.46.

On Monday, the Treasury revealed this month's auction of $42 billion worth of two-year notes attracted well above average demand.

The Treasury is due to announce the results of this month's auction of $35 billion worth of seven-year notes on Wednesday.