Five-Year Note Auction Attracts Slightly Above Average Demand

(RTTNews) - Following yesterday's auction of $31 billion worth of two-year notes, the Treasury Department sold $35 billion worth of five-year notes on Wednesday, attracting slightly above average demand.

The five-year note auction drew a high yield of 1.513 percent and a bid-to-cover ratio of 2.73.

The Treasury also sold $35 billion worth of five-year notes last month, drawing a high yield of 1.732 percent and a bid-to-cover ratio of 2.79.

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 2.65.

Peter Boockvar, managing director at the Lindsey Group, said, "With a yield at the lowest level in almost 3 months, the 5-year note auction was uneventful following the ordinary 2-year note auction yesterday."

Finishing off this week's series of long-term securities auctions, the Treasury is due to sell $29 billion worth of seven-year notes on Thursday.