A day after revealing its two-year note auction attracted above average demand, the Treasury Department showed this month’s auction of $41 billion worth of five-year notes attracted slightly below average demand.
The five-year note auction drew a high yield of 1.600 percent and a bid-to-cover ratio of 2.32.
Last month, the Treasury also sold $41 billion worth of five-year notes last month, drawing a high yield of 1.365 percent and a bid-to-cover ratio of 2.48.
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 2.36.
Looking ahead, the Treasury is due to announce the results of its auction of $32 billion worth of seven-year notes on Thursday.
The material has been provided by InstaForex Company – www.instaforex.com