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Seven-Year Note Auction Attracts Average Demand

After announcing the results of this month's two-year and five-year note auctions earlier this week, the Treasury Department revealed Thursday that its auction of $41 billion worth of seven-year notes attracted average demand.

The seven-year note auction drew a high yield of 0.511 percent and a bid-to-cover ratio of 2.49.

Last month, the Treasury sold $38 billion worth of seven-year notes, drawing a high yield of 0.553 percent and a bid-to-cover ratio of 2.55.

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 2.48.

Earlier this week, the Treasury revealed its auction of $46 billion worth of two-year notes attracted below average demand, while its auction of $47 billion worth of five-year notes attracted above average demand.

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