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Seven-Year Note Auction Attracts Modestly Above Average Demand

Finishing off this week's series of announcement of the results of its long-term securities auctions, the Treasury Department revealed Thursday that this month's auction of $53 billion worth of seven-year notes attracted modestly above average demand.

The seven-year note auction drew a high yield of 1.769 percent and a bid-to-cover ratio of 2.36.

The Treasury sold $56 billion worth of seven-year notes last month, drawing a high yield of 1.480 percent and a bid-to-cover ratio of 2.21.

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 2.30.

Earlier this week, the Treasury revealed this month's auction of $54 billion worth of two-year notes and $55 billion worth of five-year notes both attracted above average demand.

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