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U.S. 5-year sale draws above-average bid from pensions, insurers

Demand at the U.S. auction of $35 billion of five-year notes from a group that includes pension funds and insurers approached the highest level in almost a year amid speculation on the Federal Reserves agenda and turmoil in Ukraine.

By Cordell Eddings, Daniel Kruger | Updated on April 23, 2014

April 23 (Bloomberg) — Demand at the U.S. auction of $35 billion of five-year notes from a group that includes pension funds and insurers approached the highest level in almost a year amid speculation on the Federal Reserve’s agenda and turmoil in Ukraine.

The sale drew stronger-than-average demand from all bidders, with a bid-to-cover ratio, a gauge that compares the amount bid with the amount sold, of 2.79, versus an average of 2.62 at the past 10 offerings. Direct bidders bought 18.6 percent of the notes, compared with an average of 11.4 percent at the past 10 sales. Treasuries rose as tensions between Ukraine and Russia intensified. The Fed meets next week.

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