Seven-Year Note Auction Attracts Average Demand
The Treasury Department finished off this week’s series of announcements of the results of its long-term securities auctions on Thursday, revealing that the sale of $47 billion worth of seven-year notes attracted average demand.
The seven-year note auction drew a high yield of 0.519 percent and a bid-to-cover ratio of 2.47.
Last month, the Treasury sold $44 billion worth of seven-year notes, drawing a high yield of 0.446 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 2.50.
Earlier this week, the Treasury revealed its auctions of $50 billion worth of two-year notes and $51 billion worth of five-year notes both attracted above average demand.
The material has been provided by InstaForex Company – www.instaforex.com