Five-Year Note Auction Attracts Modestly Above Average Demand

(RTTNews) - A day after revealing below average demand for this month's two-year note auction, the Treasury Department on Tuesday reported modestly above average demand for this month's auction of $43 billion worth of five-year notes.

The five-year note auction drew a high yield of 3.665 percent and a bid-to-cover ratio of 2.48.

The Treasury also sold $43 billion worth of five-year notes last month, drawing a high yield of 4.109 percent and a bid-to-cover ratio of 2.48.

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 2.42.

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