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Seven-Year Note Auction Attracts Slightly Below Average Demand

By RTTNews Staff Writer   ✉  | Published:  | Google News Follow Us  | Join Us

A day after reporting modestly below average demand for this month's five-year note auction, the Treasury Department on Thursday revealed this month's auction of $44 billion worth of seven-year notes also attracted slightly below average demand.

The seven-year note auction drew a high yield of 3.790 percent and a bid-to-cover ratio of 2.50.

Last month, the Treasury also sold $44 billion worth of seven-year notes, drawing a high yield of 4.018 percent and a bid-to-cover ratio of 2.45.

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 2.53.

Earlier this week, the Treasury revealed this month's auction of $69 billion worth of two-year notes attracted slightly above average demand, while this month's auction of $70 billion worth of five-year notes attracted modestly below average demand.

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