Seven-Year Note Auction Attracts Below Average Demand

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

The seven-year note auction drew a high yield of 3.781 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 3.790 percent and a bid-to-cover ratio of 2.46.

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 2.57.

Earlier this week, the Treasury revealed this month's auctions of $69 billion worth of two-year notes and $70 billion worth of five-year notes both attracted modestly above average demand.