Five-Year Note Auction Attracts Modestly Below Average Demand

(RTTNews) - The Treasury Department announced the results of this month's auction of $70 billion worth of five-year notes on Wednesday, revealing the sale attracted modestly below average demand.

The five-year note auction drew a high yield of 4.659 percent and a bid-to-cover ratio of 2.39.

Last month, the Treasury sold $67 billion worth of five-year notes, drawing a high yield of 4.235 percent and a bid-to-cover ratio of 2.41.

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 2.46.

On Tuesday, the Treasury revealed this month's auction of $69 billion worth of two-year notes also attracted modestly below average demand.

The Treasury is due to announce the results of this month's auction of $44 billion worth of seven-year notes on Thursday.