Following yesterday’s auction of $37 billion worth of two-year notes, the Treasury Department sold $38 billion worth of five-year notes on Tuesday, attracting modestly below average demand.
The five-year note auction drew a high yield of 2.997 percent and a bid-to-cover ratio of 2.39.
Last month, the Treasury sold $37 billion worth of five-year notes, drawing a high yield of 2.765 percent and a bid-to-cover ratio of 2.49.
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 2.48.
Looking ahead, the Treasury is due to finish off this week’s series of long-term securities auctions with the sale of $31 billion worth of seven-year notes on Thursday.