Seven-Year Note Auction Attracts Below Average Demand

(RTTNews) - A day after reporting below average demand for this month's two-year and five-year note auctions, the Treasury Department on Tuesday revealed this month's auction of $39 billion worth of seven-year notes also attracted below average demand.

The seven-year note auction drew a high yield of 4.399 percent and a bid-to-cover ratio of 2.44.

The Treasury sold $38 billion worth of seven-year notes last month, drawing a high yield of 4.908 percent and a bid-to-cover ratio of 2.70.

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 2.54.

The Treasury announced the results of this month's auctions of $54 billion worth of two-year notes and $55 billion worth of five-year notes on Monday.