Seven-Year Note Auction Attracts Modestly Above Average Demand

(RTTNews) - On the heels of the Christmas Day holiday on Wednesday, the Treasury Department revealed Thursday that its auction of $32 billion worth of seven-year notes attracted modestly above average demand.

The seven-year note auction drew a high yield of 1.835 percent and a bid-to-cover ratio of 2.47.

Last month, the Treasury also sold $32 billion worth of seven-year notes, drawing a high yield of 1.719 percent and a bid-to-cover ratio of 2.44.

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 2.42.

The Treasury revealed earlier this week that its auction of $40 billion worth of two-year notes attracted below average demand, while its auction of $41 billion worth of five-year notes attracted above average demand.