|
Resource Center » U.S. & International Recaps | Release Dates | Why Investors Care | Today's Calendar
|
|
5-Year Note Auction
|
Definition
Treasury notes are sold at regularly scheduled public auctions. The competitive bids at these auctions determine the interest rate paid on each Treasury note issue. Twenty primary dealers (as of November 30, 2007) are authorized and obligated to submit competitive tenders at Treasury auctions. Dealers can hold, resell, or trade the securities with other firms. The Treasury announces the amount, date and time of the 5-year note auction monthly. The 5-year notes are announced around the third week of the month (usually on Thursday) and then auctioned the following week (usually Thursday). The 5-year notes are issued (settled) on the last day of the month, unless it falls on a weekend or holiday, and then they are issued on the next business day. Why Investors Care
|
|
|
|
|
|
Highlights
Demand was soft for the monthly 5-year note auction, sold at a high yield of 2.909 percent that was a full 1 basis point above expectations. The bid-to-cover was also soft at 2.16 vs. a long-term average of 2.35. Indirect bidding, which offers indications on buy-side demand, was definitely soft with bidders in this category taking only 21 percent of the auction vs. an average of 38 percent. Today's results follow yesterday's soft results for the 2-year auction and suggest that rising borrowing needs by the Treasury may be crimping demand. Treasury yields rose in reaction to the results.
|
Trends
![[Chart]](chart.gif)
|
This chart reflects the monthly average yields for 5-year notes in the secondary market. These could be at slight odds with the auction averages in the primary market. |
Data Source: Haver Analytics | Consensus Data Source: Market News International and Thomson Financial
|
|
|
powered by ![[Econoday]](../../../../../../../../../images/logo.gif)
|
|
Legal Notices | © Copyright 2000 -2008
Econoday, Inc.
|
![[grid]](grid.gif)