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Seven-Year Note Auction Attracts 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 $35 billion worth of seven-year notes attracted below average demand.

The seven-year note auction drew a high yield of 3.890 percent and a bid-to-cover ratio of 2.33.

The Treasury also sold $35 billion worth of seven-year notes last month, drawing a high yield of 4.027 percent and a bid-to-cover ratio of 2.43.

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 2.50.

On Monday, the Treasury revealed this month's auction of $42 billion worth of two-year notes attracted slightly above average demand, while this month's auction of $43 billion worth of five-year notes attracted slightly below average demand.

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