With the Christmas holiday looming, the Treasury Department released the results of this month’s auction of $41 billion worth of five-year notes a little earlier than normal on Tuesday, revealing that the auction attracted above average demand.

The five-year note auction drew a high yield of 1.756 percent and a bid-to-cover ratio of 2.49.

Last month, the Treasury also sold $41 billion worth of five-year notes, drawing a high yield of 1.587 percent and a bid-to-cover ratio of 2.50.

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 2.39.

Following the holiday, 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