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Seven-Year Note Auction Attracts Modestly Below Average Demand

With the Federal Reserve's monetary policy decision looming, the Treasury Department announce the results of its auction of $44 billion worth of seven-year notes on Tuesday, revealing the sale attracted slightly below average demand.

The seven-year note auction drew a high yield of 0.446 percent and a bid-to-cover ratio of 2.45.

The Treasury sold $41 billion worth of seven-year notes last month, drawing a high yield of 0.511 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 2.51.

On Monday, the Treasury revealed its auctions of $48 billion worth of two-year notes and $49 billion worth of five-year notes both attracted below average demand.

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