WASHINGTON (dpa-AFX) - Continuing this week's series of long-term securities auctions, the Treasury Department sold $35 billion worth of five-year notes on Tuesday, attracting above average demand.
The five-year note auction drew a high yield of 1.72 percent and a bid-to-cover ratio of 2.81.
Last month, the Treasury also sold $35 billion worth of five-year notes, drawing a high yield of 1.67 percent and a bid-to-cover ratio of 2.74.
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 2.72.
Peter Boockvar, managing director at the Lindsey Group, said, 'After the soft 2-year note auction yesterday, today's 5-year auction was much better.'
'Bottom line, the 2nd highest yield at a 5-year auction since the spring of 2011 brought out attractive demand ahead of tomorrow's 2 pm FOMC statement,' he added.
Finishing off this week's series of long-term securities auctions, the Treasury is due to sell $29 billion worth of seven-year notes on Wednesday.
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