Continuing this week’s series of long-term securities auctions, the Treasury Department sold $35 billion worth of five-year notes on Wednesday, attracting below average demand.
The five-year note auction drew a high yield of 1.463 percent and a bid-to-cover ratio of 2.34.
Last month, the Treasury also sold $35 billion worth of five-year notes, drawing a high yield of 1.625 percent and a bid-to-cover ratio of 2.58.
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 2.50.
Looking ahead, the Treasury is due to finish off this week’s series of long-term securities auctions with the sale of $29 billion worth of seven-year notes on Thursday.
The material has been provided by InstaForex Company – www.instaforex.com