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 05/30/2007 Yield Awarded 4.818 % Highlights Results were mixed for the Treasury's $13 billion auction of 5-year notes, sold at a high yield of 4.818 percent that was in line with expectations and at a strong bid-to-cover of 2.60. But once again demand from non-dealers, that is buy-side accounts such as insurance companies and pension funds, was very light as the group took only 20 percent of the auction against a long-term average of 35 percent. Non-dealer demand for yesterday's 2-year auction was also light, perhaps an indication that rising interest rates are pushing back demand for Treasuries. Treasuries showed little 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.