5-Year Treasury Auction Exceeds Expectations (IEI)

Demand for 5-Year Treasury notes exceeded expectations Wednesday, as the government sold $37 billion in new debt. There was a yield of 1.796 percent with the bid 3.06 times the number of dollars auctioned off, a measure known as the bid-to-cover ratio. Foreign demand was the best in four years, with indirect bids representing 47% of the total. The five-year sale was the second of three debt auctions scheduled this week, totaling $104 billion. The Shares Lehman 3-7 Yr Treasury Bond ETF IEI is up 0.28% today, to $115.57.