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Five-Year Note Auction Attracts Average Demand

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Five-Year Note Auction Attracts Average Demand

After announcing the results of its two-year note auction on Tuesday, the Treasury Department revealed Wednesday that its auction of $53 billion worth of five-year notes attracted average demand.

The five-year note auction drew a high yield of 0.275 percent and a bid-to-cover ratio of 2.52.

Last month, the Treasury sold $51 billion worth of five-year notes, drawing a high yield of 0.298 percent and a bid-to-cover ratio of 2.71.

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 2.49.

Looking ahead, the Treasury is due to announce the results of its auction of $50 billion worth of seven-year notes on Thursday.

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