Five-Year Note Auction Attracts Below Average Demand

(RTTNews) - Continuing this week's series of long-term securities auctions, the Treasury Department sold $35 billion worth of five-year notes on Wednesday, attracting below average demand.

The five-year note auction drew a high yield of 1.560 percent and a bid-to-cover ratio of 2.46.

The Treasury also sold $35 billion worth of five-year notes last month, drawing a high yield of 1.380 percent and a bid-to-cover ratio of 2.56.

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 2.58.

Finishing off this week's series of long-term securities auctions, the Treasury is due to sell $29 billion worth of seven-year notes on Thursday.