Seven-Year Note Auction Attracts Below Average Demand

(RTTNews) - The Treasury Department finished off this week's series of announcements of the results of its long-term securities auctions on Thursday, revealing this month's sale of $44 billion worth of seven-year notes attracted average demand.

The seven-year note auction drew a high yield of 4.022 percent and a bid-to-cover ratio of 2.53.

Last month, the Treasury also sold $44 billion worth of seven-year notes, drawing a high yield of 4.194 percent and a bid-to-cover ratio of 2.69.

The bid-to-cover ratio is a measure of demand that indicates the amount of bids for each dollar worth of securities being sold.

The ten previous seven-year note auctions had an average bid-to-cover ratio of 2.64.

Earlier this week, the Treasury revealed this month's auction of $69 billion worth of two-year notes attracted slightly above average demand, while this month's auction of $70 billion worth of five-year notes attracted slightly below average demand.