Seven-Year Note Auction Attracts Modestly Below Average Demand
Finishing off this week’s series of announcements of the results of its long-term securities auctions, the Treasury Department revealed Thursday that its sale of $50 billion worth of seven-year notes attracted modestly below average demand.
The seven-year note auction drew a high yield of 0.462 percent and a bid-to-cover ratio of 2.42.
Last month, the Treasury sold $47 billion worth of seven-year notes, drawing a high yield of 0.519 percent and a bid-to-cover ratio of 2.47.
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.
Earlier this week, the Treasury revealed its auction of $52 billion worth of two-year notes attracted below average demand, while its auction of $53 billion worth of five-year notes attracted average demand.