Five-Year Note Auction Attracts Modestly Below Average Demand

(RTTNews) - A day after announcing the results of this month's auction of $69 billion worth of two-year notes, the Treasury Department on Wednesday revealed this month's auction of $70 billion worth of five-year notes attracted modestly below average demand.

The five-year note auction drew a high yield of 4.100 percent and a bid-to-cover ratio of 2.33.

The Treasury also sold $70 billion worth of five-year notes last month, drawing a high yield of 4.123 percent and a bid-to-cover ratio of 2.42.

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 2.39.

On Tuesday, the Treasury Department revealed this month's auction of $69 billion worth of two-year notes attracted average demand.

The Treasury is scheduled to announce the results of this month's auction of $44 billion worth of seven-year notes on Thursday.