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 $29 billion worth of seven-year notes on Thursday, attracting above average demand.

The seven-year note auction drew a high yield of 1.759 percent and a bid-to-cover ratio of 2.63.

Last month, the Treasury also sold $29 billion worth of seven-year notes, drawing a high yield of 2.161 percent and a bid-to-cover ratio of 2.34.

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 2.45.

Today's seven-year note auction came after the Treasury sold $26 billion worth of two-year notes on Tuesday and $35 billion worth of five-year notes on Wednesday.