Earlier today, the Treasury auctioned $13.0 billion of 10-year notes. The issue was sold at a market-clearing yield of 5.140% (coupon of 5.125%), and the auction had a bid-to-cover ratio of 2.53.
By comparison, the 10-year note auctioned in the February refunding went off at a market-clearing yield of 4.540% (coupon of 4.500%), with a bid-to-cover ratio of 2.32.
In today's auction, total competitive and noncompetitive tenders were $32.830 billion, excluding an allotment of $2.294 billion to the Federal
Reserve System. Additional details are contained in the table below, and
today's auction concludes the Treasury's May refunding operation.
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RESULTS OF THE MAY 2006
TREASURY REFUNDING OPERATION*
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Bid/
Auct. Amt. Cover Non-
Date (Bils) Maturity Coupon Yield Price Ratio Comp.#
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05/09 $21.0 05/15/09 4.875% 4.995% 99.669+ 2.31 $0.395
05/11 $13.0 05/15/16 5.125% 5.140% 99.884- 2.53 $0.139
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*Both issues are dated 5/15/06 and settle on
5/15/06. #Amount of issue (in billions) awarded
based on non-competitive tenders submitted.
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