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 02/22/2007 Yield Awarded 4.719 % Highlights Today's 5-year note auction wasn't as aggressively bid for as recent Treasury auctions, including yesterday's 2-year note offering, but results still showed solid demand. The bid-to-cover ratio of 2.43 was strong for the $13 billion offering, an average size for a 5-year auction. But demand was centered among dealers, not among non-dealers such as insurance companies and pension funds. Non-dealers were awarded only 27 percent of the offering, up from 22 percent in the January offering but below the long-term average of 36 percent. High yield was 4.719 percent, right at expectations. The Treasury market showed no initial 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.