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Seven-Year Note Auction Attracts Above Average Demand

The Treasury Department finished off this week's series of announcements of the results of its long-term securities auctions on Wednesday, revealing this month's sale of $36 billion worth of seven-year notes attracted above average demand.

The seven-year note auction drew a high yield of 3.898 percent and a bid-to-cover ratio of 2.57.

Last month, the Treasury sold $37 billion worth of seven-year notes, drawing a high yield of 3.130 percent and a bid-to-cover ratio of 2.65.

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 2.46.

Earlier this week, the Treasury revealed this month's auctions of $43 billion worth of two-year notes and $44 billion worth of five-year notes both attracted below average demand.

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