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Seven-Year Note Auction Attracts Below Average Demand

After announcing the results of its auctions of two-year and five-year notes on Tuesday, the Treasury Department revealed Thursday its auction of $32 billion worth of seven-year notes attracted below average demand.

The seven-year note auction drew a high yield of 2.144 percent and a bid-to-cover ratio of 2.30.

Last month, the Treasury also sold $32 billion worth of seven-year notes, drawing a high yield of 2.426 percent and a bid-to-cover ratio of 2.49.

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 2.52.

The release of the results of the latest seven-year note auction came after the Treasury announced the results of its auctions of $40 billion worth of two-year notes and $41 billion worth of five-year notes on Tuesday.

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