Seven-Year Note Auction Attracts Modestly Above Average Demand

(RTTNews) - After reporting below average demand for this month's two-year and five-year note auctions earlier this week, the Treasury Department on Thursday revealed this month's auction of $41 billion worth of seven-year notes attracted modestly above average demand.

The seven-year note auction drew a high yield of 4.109 percent and a bid-to-cover ratio of 2.57.

Last month, the Treasury sold $40 billion worth of seven-year notes, drawing a high yield of 3.859 percent and a bid-to-cover ratio of 2.50.

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 2.51.

Earlier this week, the Treasury revealed this month's auctions of $60 billion worth of two-year notes and $61 billion worth of five-year notes attracted well below average demand.