Caterpillar – Five-Year Note Auction Attracts Below Average Demand
(RTTNews) – After reporting below average demand for its auction of $58 billion worth of two-year notes earlier in the day, the Treasury Department revealed Monday afternoon that its auction of $59 billion worth of five-year notes also attracted below average demand.
The five-year note auction drew a high yield of 0.394 percent and a bid-to-cover ratio of 2.39.
The Treasury sold $57 billion worth of five-year notes last month, drawing a high yield of 0.397 percent and a bid-to-cover ratio of 2.38.
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 2.49.
Looking ahead, the Treasury is due to announce the result of its auction of $59 billion worth of seven-year notes on Tuesday.
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