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Seven-Year Note Auction Attracts Above Average Demand

After announcing the results of this month's two-year and five-year notes auctions on Monday, the Treasury Department revealed Tuesday that this month's auction of $59 billion worth of seven-year notes attracted strong demand.

The seven-year note auction drew a high yield of 1.588 percent and a bid-to-cover ratio of 2.42.

The Treasury sold $62 billion worth of seven-year notes last month, drawing a high yield of 1.461 percent and a bid-to-cover ratio of 2.25.

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 2.27.

On Monday, the Treasury revealed the auction of $58 billion worth of two-year notes drew well below average demand, while the auction of $59 billion worth of five-year notes drew slightly below average demand.

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