Seven-Year Note Auction Attracts Below Average Demand
Finishing off this week’s announcements of the results of its long-term securities auctions, the Treasury Department revealed Thursday that this month’s auction of $62 billion worth of seven-year notes attracted below average demand.
The seven-year note auction drew a high yield of 0.754 percent and a bid-to-cover ratio of 2.30.
The Treasury sold $59 billion worth of seven-year notes last month, drawing a high yield of 0.662 percent and a bid-to-cover ratio of 2.31.
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 2.46.
Earlier this week, the Treasury revealed its auction of $60 billion worth of two-year notes attracted above average demand, while its auction of $61 billion worth of five-year notes attracted below average demand.
The material has been provided by InstaForex Company – www.instaforex.com