Seven-Year Note Auction Attracts Above Average Demand

(RTTNews) - The Treasury Department finished off this week's series of long-term securities auctions with the sale of $31 billion worth of seven-year notes on Wednesday, attracting above average demand.

The seven-year note auction drew a high yield of 2.844 percent and a bid-to-cover ratio of 2.65.

Last month, the Treasury sold $30 billion worth of seven-year notes, drawing a high yield of 2.930 percent and a bid-to-cover ratio of 2.49.

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 drew an average bid-to-cover ratio of 2.50.

Today's seven-year note auction came after the Treasury sold $36 billion worth of two-year notes on Monday and $37 billion worth of five-year notes on Tuesday.