Five-Year Note Auction Attracts Above Average Demand
After reporting above average demand for its auction of two-year notes on Tuesday, the Treasury Department revealed on Wednesday that this month’s auction of $51 billion worth of five-year notes also attracted above average demand.
The five-year note auction drew a high yield of 0.298 percent and a bid-to-cover ratio of 2.71.
The Treasury sold $49 billion worth of five-year notes last month, drawing a high yield of 0.288 percent and a bid-to-cover ratio of 2.32.
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.
The Treasury Department is due to announce the results of its auction of $47 billion worth of seven-year notes on Thursday.
The material has been provided by InstaForex Company – www.instaforex.com