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Five-Year Note Auction Attracts Below Average Demand

After revealing weaker than expected demand for its two-year note auction earlier on Tuesday, the Treasury Department announced that its auction of $49 billion worth of five-year notes also attracted weaker than average demand.

The five-year note auction drew a high yield of 0.288 percent and a bid-to-cover ratio of 2.32.

Last month, the Treasury sold $47 billion worth of five-year notes, drawing a high yield of 0.330 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 2.46.

The Treasury Department is due to announce the results of its auction of $44 billion worth of seven-year notes on Tuesday.

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