Seven-Year Note Auction Attracts Above Average Demand

(RTTNews) - After reporting above average demand for this month's two-year and five-year note auctions earlier in the week, the Treasury Department revealed Wednesday that this month's auction of $35 billion worth of three-year notes also attracted above average demand.

The seven-year note auction drew a high yield of 3.839 percent and a bid-to-cover ratio of 2.65.

The Treasury also sold $35 billion worth of seven-year notes last month, drawing a high yield of 3.827 percent and a bid-to-cover ratio of 2.61.

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.