Seven-Year Note Auction Attracts Modestly Below Average Demand
With the Federal Reserve’s monetary policy decision looming, the Treasury Department announce the results of its auction of $44 billion worth of seven-year notes on Tuesday, revealing the sale attracted slightly below average demand.
The seven-year note auction drew a high yield of 0.446 percent and a bid-to-cover ratio of 2.45.
The Treasury sold $41 billion worth of seven-year notes last month, drawing a high yield of 0.511 percent and a bid-to-cover ratio of 2.49.
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 2.51.
On Monday, the Treasury revealed its auctions of $48 billion worth of two-year notes and $49 billion worth of five-year notes both attracted below average demand.