July 29 (Bloomberg) -- Treasury five-year notes fell as the government sold a record $39 billion of the securities, the third of four auctions totaling $115 billion that is the largest amount of so-called coupon securities sold in a single week.
The notes drew a yield of 2.689 percent, compared with a forecast of 2.635 percent in a Bloomberg News survey of eight of the Federal Reserve’s primary dealers. The bid-to-cover ratio, which gauges demand by comparing total bids with amount of securities offered was 1.92, compared with an average of 2.2 at the last 10 auctions.
“We’ve got $39 billion in fives here,” said Charles Comiskey, head of U.S. Treasury trading in New York at HSBC Securities USA Inc., one of 18 primary dealers required to bid at Treasury auctions, before the sale. “It’s a ton of paper.”
