Seven-Year Note Auction Attracts Above Average Demand

Finishing off this week's series of announcements of the results of its long-term securities auctions, the Treasury Department on Tuesday revealed this month's auction of $40 billion worth of seven-year notes attracted above average demand.

The seven-year note auction drew a high yield of 3.280 percent and a bid-to-cover ratio of 2.48.

Last month, the Treasury sold $42 billion worth of seven-year notes, drawing a high yield of 2.777 percent and a bid-to-cover ratio of 2.69.

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 2.37.

On Monday, the Treasury revealed this month's auctions of $46 billion worth of two-year notes and $47 billion worth of five-year notes attracted below average demand.

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