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

On Wednesday, the Treasury Department unveiled the results of its recent auction of five-year notes worth $70 billion, indicating a slightly below-par demand. The auction drew a high yield of 4.659 percent and a bid-to-cover ratio of 2.39.

In comparison, last month's auction of five-year notes valued at $67 billion attracted a high yield of 4.235 percent and a slightly higher bid-to-cover ratio of 2.41. The bid-to-cover ratio is a parameter that gauges the demand, reflecting the volume of bids per dollar worth of securities being auctioned.

The average bid-to-cover ratio from the last ten five-year note auctions was 2.46. Additionally, this month's auction of two-year notes worth $69 billion, revealed on Tuesday, garnered slightly less than typical demand.

Lastly, the Treasury Department is slated to announce the results of its upcoming auction of seven-year notes totaling $44 billion this Thursday.