Seven-Year Note Auction Attracts Below Average Demand

(RTTNews) - The Treasury Department announced the results of this month's auction of $32 billion worth of seven-year notes on Thursday, revealing the auction attracted below average demand.

The seven-year note auction drew a high yield of 1.967 percent and a bid-to-cover ratio of 2.27.

Last month, the Treasury also sold $32 billion worth of seven-year notes last month, drawing a high yield of 1.889 percent and a bid-to-cover ratio of 2.44.

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.

Earlier this week, the Treasury revealed its auctions of $40 billion worth of two-year notes and $41 billion worth of five-year notes both attracted below average demand.