Five-Year Note Auction Attracts Modestly Above Average Demand

(RTTNews) - The Treasury Department announced the results of this month's auction of $43 billion worth of five-year notes on Wednesday, revealing the sale attracted modestly above average demand.

The five-year note auction drew a high yield of 3.973 percent and a bid-to-cover ratio of 2.46.

The Treasury also sold $43 billion worth of five-year notes last month, drawing a high yield of 3.974 percent and a bid-to-cover ratio of 2.39.

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 2.41.

The announcement of the results of the five-year note auction come a day after the Treasury revealed this month's auction of $42 billion worth of two-year notes attracted above average demand.

On Thursday, the Treasury is due to announce the results of this month's auction of $35 billion worth of seven-year notes.