Treasury marks new U.S. 5-year supply as re-opening of 7-year issue
Aug 28 (Reuters) - The U.S. Treasury said it designated the $35 billion worth of 5-year government debt it auctioned on Wednesday as a re-opening of a previous seven-year issue because it matched the maturity and interest payment dates of the old seven-year note.
In the unscheduled re-opening in the wake of the surge in yields in recent weeks, the Treasury sold the five-year debt supply at a yield of 1.624 percent, the highest level since May 2011, to below-average demand. The "reopened" seven-year issue will carry a coupon rate of 1.50 percent and mature in August 2018.
On the open market, the seven-year Treasuries due in August 2018 were yielding 1.622 percent in mid-afternoon Wednesday trading.
The Treasury will complete this week's $98 billion coupon-bearing supply with a $29 billion sale of new seven-year notes on Thursday at 1 p.m. (1700 GMT).
In the "when-issued" market, traders expected the upcoming seven-year supply to sell at a yield of 2.235 percent, which would be highest level since July 2011.
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