Seven-Year Note Auction Attracts Above Average Demand

(RTTNews) - Following yesterday's auction of $35 billion worth of five-year notes, the Treasury Department sold $29 billion worth of seven-year notes on Thursday, attracting above average demand.

The seven-year note auction drew a high yield of 1.885 percent and a bid-to-cover ratio of 2.55.

Last month, the Treasury also sold $29 billion worth of seven-year notes, drawing a high yield of 1.813 percent and a bid-to-cover ratio of 2.51.

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 auctions had an average bid-to-cover ratio of 2.44.

Last week, the Treasury announced it would postpone the two-year note auction originally scheduled for Tuesday as a result of the debt limit impasse.