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 09/27/2007 Yield Awarded 4.250 % Highlights It was another very strong auction for the Treasury as the monthly $13 billion 5-year drew a bid-to-cover ratio of 2.86, the highest in two years, and a 45 percent indirect bid, also about the highest in two years. The award rate of 4.250 percent was about one basis point below expectations. Global flight to safety and smaller offering sizes are making for a chart-breaking run of auctions. Treasury prices firmed in 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.