FX.co ★ Five-Year Note Auction Attracts Below Average Demand

A day after reporting below average demand for this month's two-year note auction, the Treasury Department on Wednesday revealed this month's auction of $52 billion worth of five-year notes also attracted below average demand.

The five-year note auction drew a high yield of 4.899 percent and a bid-to-cover ratio of 2.36.

The Treasury sold $49 billion worth of five-year notes last month, drawing a high yield of 4.659 percent and a bid-to-cover ratio of 2.52.

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 2.54.

On Thursday, the Treasury is due to announce the results of this month's auction of $38 billion worth of seven-year notes.