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

The Treasury Department continued its recent announcements regarding long-term securities auctions on Tuesday, reporting that this month's auction of $70 billion in five-year notes experienced slightly higher-than-average demand. The ten-year note auction resulted in a high yield of 4.197% with a bid-to-cover ratio of 2.43.

In comparison, the previous month's auction of an identical $70 billion in five-year notes yielded a high rate of 4.138% and had a bid-to-cover ratio of 2.39. The bid-to-cover ratio is a metric used to assess demand, representing the number of bids received for each dollar of securities available for sale.

Over the last ten auctions for five-year notes, the average bid-to-cover ratio has been 2.38. Earlier, on Monday, the Treasury reported that the auction of $69 billion in two-year notes also surpassed average demand levels.

The Treasury is set to release the results of its auction of $44 billion in seven-year notes on Wednesday.