Market participants said the current configuration of interest rates makes the five-year issue even more attractive than the two-year.

Securities dealers said the five-year issue was popular with some investors who have been shifting funds away from long-term issues.

The $460 million five-year issue was offered at 8.05 percent, or about 28 basis points more than Treasury notes.

For five-year issues the spread would normally be much narrower.

Some dealers have suggested that the five-year issue may need a bit more of a concession before the auction takes place.

In when-issued trading yesterday, the new five-year issue was being offered at a price to yield 3.54 percent.

The $755 million five-year issue with a three-year call option will yield 8.80 percent.

The $7.75 billion five-year issue to be auctioned tomorrow was offered at 8.30 percent, down from 8.35 percent.

Note sales next month will be limited to another round of two-year and five-year issues.

The five-year issue to be sold next Wednesday was at 6.73 percent, down from 6.80 percent.