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Seven-Year Note Auction Attracts Average Demand

On the heels of yesterday's auctions of two-year and five-year notes, the Treasury Department sold $32 billion worth of seven-year notes on Tuesday, attracting average demand.

The seven-year note auction drew a high yield of 2.625 percent and a bid-to-cover ratio of 2.54.

Last month, the Treasury also sold $32 billion worth of seven-year notes, drawing a high yield of 2.680 percent and a bid-to-cover ratio of 2.46.

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 2.53.

Today's seven-year note auction came after the Treasury sold $40 billion worth of two-year notes and $41 billion worth of five-year notes on Monday.

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