Seven-Year Note Auction Attracts Modestly Below Average Demand

Finishing off this week's series of announcements of the results of its long-term securities auctions, the Treasury Department revealed Tuesday that this month's auction of $62 billion worth of seven-year notes attracted modestly below average demand.

The seven-year note auction drew a high yield of 1.332 percent and a bid-to-cover ratio of 2.24.

Last month, the Treasury also sold $62 billion worth of seven-year notes, drawing a high yield of 1.155 percent and a bid-to-cover ratio of 2.34.

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 2.29.

On Monday, the Treasury announced the results of this month's auctions of $60 billion worth of two-year notes and $61 billion worth of five-year notes.

The two-year note auction attracted below average demand, while the five-year note auction attracted average demand.

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