Five-Year Note Auction Attracts Above Average Demand

(RTTNews) - A day after revealing average demand for this year's two-year note auction, the Treasury Department on Wednesday announced the results of this month's auction of $43 billion worth of five-year notes, which attracted above average demand.

The five-year note auction drew a high yield of 4.192 percent and a bid-to-cover ratio of 2.48.

The Treasury sold $44 billion worth of five-year notes last month, drawing a high yield of 4.228 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.

On Thursday, the Treasury is due to finish off this week's series of announcements of auction results, revealing the results of this month's auction of $35 billion worth of seven-year notes.