Seven-Year Note Auction Attracts Below Average Demand

(RTTNews) - Finishing off this week's series of long-term securities auctions, the Treasury Department sold $29 billion worth of seven-year notes on Wednesday, attracting below average demand.

The seven-year note auction drew a high yield of 2.106 percent and a bid-to-cover ratio of 2.36.

Last month, the Treasury also sold $29 billion worth of seven-year notes, drawing a high yield of 1.87 percent and a bid-to-cover ratio of 2.66.

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 2.59.

Today's seven-year note auction came after the Treasury sold $32 billion worth of two-year notes on Monday and $35 billion worth of five-year notes on Tuesday.