Seven-Year Note Auction Attracts Strong Demand

(RTTNews) - Finishing off this week's series of announcements of the results of its long-term securities auctions, the Treasury Department on Tuesday revealed this month's auction of $44 billion worth of seven-year notes attracted well above average demand.

The seven-year note auction drew a high yield of 4.215 percent and a bid-to-cover ratio of 2.74

Last month, the Treasury also sold $44 billion worth of seven-year notes, drawing a high yield of 3.668 percent and a bid-to-cover ratio of 2.63.

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 2.55.

On Monday, the Treasury Department announced the results of this month's auctions of $69 billion worth of two-year notes and $70 billion worth of five-year notes.

While the two-year note auction attracted below average demand, the five-year note auction attracted roughly average demand.