2021.01.2617:12:00UTC+00Five-Year Note Auction Attracts Below Average Demand

Continuing this week's series of announcements of the results of its long-term securities auctions, the Treasury Department revealed on Tuesday that its auction of $61 billion worth of five-year notes attracted below average demand.

The five-year note auction drew a high yield of 0.424 percent and a bid-to-cover ratio of 2.34.

Last month, the Treasury sold $59 billion worth of five-year notes, drawing a high yield of 0.394 percent and a bid-to-cover ratio of 2.39.

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.

The Treasury revealed on Monday that its auction of $60 billion worth of two-year notes attracted above average demand.

Looking ahead, the Treasury is due to announce the result of its auction of $62 billion worth of seven-year notes on Thursday.