Five-Year Note Auction Attracts Below Average Demand

(RTTNews) - After reporting below average demand for its auction of $58 billion worth of two-year notes earlier in the day, the Treasury Department revealed Monday afternoon that its auction of $59 billion worth of five-year notes also attracted below average demand.

The five-year note auction drew a high yield of 0.394 percent and a bid-to-cover ratio of 2.39.

The Treasury sold $57 billion worth of five-year notes last month, drawing a high yield of 0.397 percent and a bid-to-cover ratio of 2.38.

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 2.49.

Looking ahead, the Treasury is due to announce the result of its auction of $59 billion worth of seven-year notes on Tuesday.