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Seven-Year Note Auction Attracts Below Average Demand

After revealing above average demand for its auctions of two-year and five-year notes earlier this week, the Treasury Department showed Thursday that its auction of $32 billion worth of seven-year notes attracted well below average demand.

The seven-year note auction drew a high yield of 1.489 percent and a bid-to-cover ratio of 2.16.

The Treasury also sold $32 billion worth of seven-year notes last month, drawing a high yield of 1.967 percent and a bid-to-cover ratio of 2.27.

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 2.46.

Earlier this week, the Treasury released the results of its auctions of $40 billion worth of two-year notes and $41 billion worth of five-year notes.

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