Five-Year Note Auction Attracts Average Demand

(RTTNews) - A day after revealing this month's two-year note auction attracted below average demand, the Treasury Department on Tuesday revealed this month's auction of $70 billion worth of five-year notes attracted roughly average demand.

The five-year note auction drew a high yield of 3.747 percent and a bid-to-cover ratio of 2.35.

Last month, the Treasury also sold $70 billion worth of five-year notes, drawing a high yield of 3.562 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 2.37.

On Monday, the Treasury revealed this month's sale of $69 billion worth of two-year notes attracted modestly above average demand.

The Treasury is due to finish off this week's series of announcements of the results of its long-term securities auctions on Wednesday by revealing the results of this month's sale of $44 billion worth of seven-year notes.