Seven-Year Note Auction Attracts Below Average Demand

(RTTNews) - The Treasury Department on Tuesday announced the results of this month's auction of $44 billion worth of seven-year notes, revealing the sale attracted below average demand.

The seven-year note auction drew a high yield of 3.790 percent and a bid-to-cover ratio of 2.46.

Last month, the Treasury also sold $44 billion worth of seven-year notes, drawing a high yield of 3.953 percent and a bid-to-cover ratio of 2.40.

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 2.60.

On Monday, the Treasury revealed this month's auctions of $69 billion worth of two-year notes and $70 billion worth of five-year notes attracted average demand.