Seven-Year Note Auction Attracts Below Average Demand

(RTTNews) - The Treasury Department finished off this week's announcements of the results of its long-term securities auctions on Tuesday, revealing its sale of $59 billion worth of seven-year notes attracted below average demand.

The seven-year note auction drew a high yield of 0.662 percent and a bid-to-cover ratio of 2.31.

Last month, the Treasury sold $56 billion worth of seven-year notes, drawing a high yield of 0.653 percent and a bid-to-cover ratio of 2.37.

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.

On Monday, the Treasury revealed its auctions of $58 billion worth of two-year notes and $59 billion worth of five-year notes also attracted below average demand.