Seven-Year Note Auction Attracts Average Demand

(RTTNews) - A day after reporting mixed demand for this month's two-year and five-year note auctions, the Treasury Department on Tuesday revealed this month's auction of $44 billion worth of seven-year notes attracted average demand.

The seven-year note auction drew a high yield of 4.473 percent and a bid-to-cover ratio of 2.49.

Last month, the Treasury also sold $44 billion worth of seven-year notes, drawing a high yield of 4.260 percent and a bid-to-cover ratio of 2.50.

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 2.48.

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