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 1.125 percent and a bid-to-cover ratio of 2.54.

Last month, the Treasury Department also sold $34 billion worth of five-year notes, drawing a high yield of 1.180 percent and a bid-to-cover ratio of 2.27.

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 Treasury Department 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 on Thursday.