Seven-Year Note Auction Attracts Above Average Demand

(RTTNews) - A day after reporting below average demand for this month's two-year and five-year note auctions, the Treasury on Tuesday revealed this month's auction of $42 billion worth of seven-year notes attracted above average demand.

The seven-year note auction drew a high yield of 4.327 percent and a bid-to-cover ratio of 2.58.

Last month, the Treasury sold $41 billion worth of seven-year note, drawing a high yield of 4.109 percent and a bid-to-cover ratio of 2.57.

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 2.53.

On Monday, the Treasury revealed this month's auctions of $63 billion worth of two-year notes and $64 billion worth of five-year notes attracted below average demand.