Seven-Year Note Auction Attracts Average Demand

After announcing the results of its auctions of two-year and five-year notes earlier this week, the Treasury Department revealed Wednesday that its auction of $32 billion worth of seven-year notes attracted average demand.

The seven-year note auction drew a high yield of 1.719 percent and a bid-to-cover ratio of 2.44.

Last month, the Treasury also sold $32 billion worth of seven-year notes, drawing a high yield of 1.657 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 2.43.

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 above average demand.

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