Seven-Year Note Auction Attracts Below Average Demand

(RTTNews) - After reporting mixed demand for this month's two-year and five-year note auctions earlier this week, the Treasury Department revealed on Wednesday that this month's auction of $35 billion worth of seven-year notes attracted below average demand.

The seven-year note auction drew a high yield of 3.626 percent and a bid-to-cover ratio of 2.39.

Last month, the Treasury also sold $35 billion worth of seven-year notes, drawing a high yield of 4.062 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 had an average bid-to-cover ratio of 2.54.

Earlier this week, the Treasury revealed this month's auction of $42 billion worth of two-year notes attracted below average demand, while this month's auction of $43 billion worth of five-year notes attracted modestly above average demand.