Treasury 5-Year Notes Go at 1.624% High Yield

The Treasury Department auctioned $35 billion of five-year notes, with a 1 1/2% coupon, a 1.624% high yield, a price of 99.407655.

The bid-to-cover ratio was 2.38.

Tenders at the high yield were allotted 91.92%. All competitive tenders at lower yields were accepted in full.

The median yield was 1.587%. The low yield was 1.525%.

Tenders totaled $83,188,241,000 and the Treasury accepted $35,000,105,000 including $45,741,000 non-competitive.

The Fed banks bought nothing for their own account in exchange for maturing securities.

The notes, which are dated August 31, will mature August 31, 2018.

Treasury released a statement, "Although a new 5-year note offering was announced on Thursday, August 22, 2013, the interest rate of 1-1/2 percent determined at today's auction for these securities matches that of an outstanding 7-year note with the same maturity and interest payment dates. In accordance with Treasury's past procedure, the 5-year notes will be considered an additional issue of the outstanding 7-year notes of Series P-2018 (CUSIP No. 912828RE2) originally issued August 31, 2011."

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