Five-Year Note Auction Attracts Below Average Demand

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After revealing below average demand for its two-year note auction earlier in the day, the Treasury Department announced on Monday that this month’s auction of $61 billion worth of five-year notes also attracted below average demand.

The five-year note auction drew a high yield of 0.849 percent and a bid-to-cover ratio of 2.31.

The Treasury also sold $61 billion worth of five-year notes last month, drawing a high yield of 0.850 percent and a bid-to-cover ratio of 2.36.

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 2.41.

On Tuesday, the Treasury is scheduled to announce the results of this month’s auction of $62 billion worth of seven-year notes.

The material has been provided by InstaForex Company – www.instaforex.com

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