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 10/25/2007 Yield Awarded 3.993 % Highlights The 5-year Treasury went well as the monthly $13 billion 5-year drew a bid-to-cover ratio of 2.69, down from 2.86 last month but still quite respectable. The award rate of 3.993 percent was in line with expectations. The award rate has been pushed down by global flight to safety as subprime concerns reemerged with yesterday's shocker of higher-than-expected mark-downs by Merrill Lynch. The high yield is down from a recent high of 4.940 percent from the auction this past June. 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.