In 1959, people lined up to get a chance to buy the "Magic 5's," five-year Treasuries that promised a previously unheard-of 5 percent yield.

The county fund borrowed money at floating interest rates and used the money to buy five-year Treasuries.

Every six months, the Government sets a market-based rate for the bonds equivalent to 85 percent of the average return on marketable five-year Treasuries.

By late yesterday a five-year Treasury was yielding 5.48 percent and a 10-year 5.50 percent.

You can't buy a five-year CD that is yielding anywhere near a five-year Treasury, for example.

At auctions today and tomorrow, more than $21 billion worth of new two-year and five-year Treasury notes will be offered.

Most of the session's focus was on auctions today and tomorrow of new two-year and five-year Treasury notes.

Auctions of new two-year and five-year Treasury notes will be held tomorrow and on Wednesday, but the economic calendar is very light.

"That was issued at 61 basis points over the five-year Treasury, which we thought was a pretty aggressive pricing," the trader said.

But if that person bought a five-year zero-coupon Treasury, yielding about 8.65 percent, the purchase price would drop to about $655.