Five-Year Note Auction Attracts Below Average Demand

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

The five-year note auction drew a high yield of 4.055 percent and a bid-to-cover ratio of 2.31.

The Treasury sold $58 billion worth of five-year notes last month, drawing a high yield of 3.801 percent and a bid-to-cover ratio of 2.50.

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 2.51.

On Tuesday, the Treasury revealed this month's auction of $60 billion worth of two-year notes also attracted below average demand.

The Treasury is due to announce the results of this month's auction of $41 billion worth of seven-year notes on Thursday.