Five-Year Note Auction Attracts Slightly Above Average Demand … RTT
Five-Year Note Auction Attracts Slightly Above Average Demand
Following yesterday’s auction of $34 billion worth of two-year notes, the Treasury Department sold $36 billion worth of five-year notes on Wednesday, attracting slightly above average demand.
The five-year note auction drew a high yield of 2.719 percent and a bid-to-cover ratio of 2.55.
Last month, the Treasury also sold $36 billion worth of five-year notes, drawing a high yield of 2.864 percent and a bid-to-cover ratio of 2.52.
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 2.48.
The Treasury is due to finish off this week’s series of long-term securities auctions with the sale of $30 billion worth of seven-year notes on Thursday.