Five-Year Note Auction Attracts Above Average Demand

(RTTNews) - Continuing this week's series of long-term securities auctions, the Treasury Department sold $34 billion worth of five-year notes on Wednesday, attracting above average demand.

The five-year note auction drew a high yield of 1.831 percent and a bid-to-cover ratio of 2.67.

The Treasury also sold $34 billion worth of five-year notes last month, drawing a high yield of 1.875 percent and a bid-to-cover ratio of 2.34.

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 2.42.

On Thursday, the Treasury is due to finish off this week's series of long-term securities auctions with the sale of $28 billion worth of seven-year notes.