Seven-Year Note Auction Attracts Average Demand

(RTTNews) - The Treasury Department finished off this week's series of announcements of the results of its long-term securities auctions on Tuesday, revealing this month's auction of $44 billion worth of seven-year notes attracted average demand.

The seven-year note auction drew a high yield of 4.175 percent and a bid-to-cover ratio of 2.51.

Last month, the Treasury also sold $44 billion worth of seven-year notes, drawing a high yield of 4.255 percent and a bid-to-cover ratio of 2.43.

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 the results of this month's auctions of $69 billion worth of two-year notes and $70 billion worth of five-year notes.

The two-year note auction attracted modestly above average demand, while the five-year note auction attracted roughly average demand.