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-three primary dealers (as of July 2006) 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. Released on 04/26/2007 Yield Awarded 4.579 % Highlights Demand was solid as usual for the Treasury's 5-year auction which posted a high yield of 4.579 percent that was a bit better than expected. The bid-to-cover was firm at 2.29, and non-dealers showed solid interest taking 39 percent of the $13 billion offering. The auction caps off a strong week for the Treasury which auctioned 2-year notes yesterday and 5-year TIPS on Tuesday. There was no reaction to the results. Trends 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 Legal Notices | © 1998-2006 Econoday, Inc. All Rights Reserved.