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Seven-Year Note Auction Attracts Modestly Below Average Demand

Finishing off this week's announcements of the results of its long-term securities auctions, the Treasury Department revealed Thursday that its auction of $32 billion worth of seven-year notes attracted modestly below average demand.

The seven-year note auction drew a high yield of 1.889 percent and a bid-to-cover ratio of 2.44.

The Treasury also sold $32 billion worth of seven-year notes last month, drawing a high yield of 2.144 percent and a bid-to-cover ratio of 2.30.

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 2.50.

The release of the results of the latest seven-year note auction came after the Treasury revealed earlier this week that its auctions of $40 billion worth of two-year notes and $41 billion worth of five-year notes both attracted average demand.

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