Earlier today, the Treasury auctioned $15.0 billion of five-year notes. This was the second of three legs of the Treasury's November refunding operation.
Today's issue was sold at a market-clearing yield of 3.510%, and the auction had a bid-to-cover ratio of 2.90. By comparison, the five-year note sold in the August refunding went off at a market-clearing yield of 3.520%, with a bid-to-cover ratio of 2.64.
Total competitive and noncompetitive tenders today were $43.473 billion, excluding an allotment of $3.750 billion to the Federal Reserve System. Additional details are contained in the tables below.
To conclude its November refunding, Treasury will auction $14.0 billion of 10-year notes tomorrow.
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Table 1.
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RESULTS OF THE NOVEMBER 2004
TREASURY REFUNDING OPERATION*
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Bid/
Auct. Amt. Cover Non-
Date (Bils) Maturity Coupon Yield Price Ratio Comp.#
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11/08 $22.0 11/15/07 3.000% 3.090% 99.744+ 2.24 $0.358
11/09 $15.0 11/15/09 3.500% 3.510% 99.955- 2.90 $0.316
11/10 $14.0 11/15/14 <------ Not Yet Auctioned ------>
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*All three issues are dated 11/15/04 and settle on
11/15/04. #Amount of issue (in billions) awarded
based on non-competitive tenders submitted.
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Table 2.
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NOVEMBER 2004 TREASURY REFUNDING OPERATION
-- AWARDS TO "PRIMARY DEALERS"
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Total Comp- Award to
et. Tenders "Primary" Award to
Accepted Dealers* "Primary"
Issue -- ($s in Billions) -- Dealers*
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November 2004 Refunding
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3-Yr. Note $21.543 $ 9.964 46.3%
5-Yr. Note $14.684 $ 8.071 55.0%
10-Yr. Note <----- Not Yet Auctioned ---->
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Subtotal $36.227 $18.035 49.8%
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August 2004 Refunding
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3-Yr. Note $21.724 $13.798 63.5%
5-Yr. Note $14.816 $ 8.255 55.7%
10-Yr. Note $13.881 $ 6.230 44.9%
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Total $50.421 $28.283 56.1%
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May 2004 Refunding
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3-Yr. Note $23.683 $12.791 54.0%
5-Yr. Note $14.778 $ 9.442 63.9%
10-yr. Note $14.798 $ 8.282 56.0%
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Total $53.259 $30.515 57.3%
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February 2004 Refunding
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3-Yr. Note $23.772 $12.526 52.7%
5-Yr. Note $15.783 $ 8.927 56.6%
10-yr. Note $15.866 $ 8.630 54.4%
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Total $55.421 $30.083 54.3%
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November 2003 Refunding
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3-Yr. Note $23.785 $14.759 62.1%
5-Yr. Note $15.816 $10.836 68.5%
10-yr. Note $16.844 $10.237 60.8%
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Total $56.445 $35.832 63.5%
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August 2003 Refunding
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3-Yr. Note $23.722 $19.137 80.7%
5-Yr. Note $17.763 $11.879 66.9%
10-yr. Note $17.760 $12.218 68.8%
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Total $59.245 $43.234 73.0%
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May 2003 Refunding
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3-Yr. Note $21.726 $15.709 72.3%
5-Yr. Note $17.784 $11.909 67.0%
10-yr. Note $17.831 $13.565 76.1%
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Total $57.341 $41.183 71.8%
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*The Treasury definition of "Primary
Dealers" is "submitters bidding for
their own house accounts."
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