Seven-Year Note Auction Attracts Modestly Below Average Demand

(RTTNews) - After revealing modestly below average demand for this month's two-year and five-year note auctions earlier in the week, the Treasury Department on Thursday revealed this month's auction of $44 billion worth of seven-year notes also attracted modestly below average demand.

The seven-year note auction drew a high yield of 4.716 percent and a bid-to-cover ratio of 2.48.

Last month, the Treasury sold $43 billion worth of seven-year notes, drawing a high yield of 4.185 percent and a bid-to-cover ratio of 2.61.

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 2.55.