Five-Year Note Auction Attracts Weak Demand

(RTTNews) - Following yesterday's mediocre auction of $27 billion worth of two-year notes, the Treasury Department sold $35 billion worth of five-year notes on Tuesday, attracting weak demand.

The five-year note auction drew a high yield of 1.739 percent and a bid-to-cover ratio of 2.39.

The Treasury also sold $35 billion worth of five-year notes last month, drawing a high yield of 1.595 percent and a bid-to-cover ratio of 2.91.

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 2.77.

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 Wednesday.