Seven-Year Note Auction Attracts Above Average Demand

The Treasury Department announced the results of this month’s auction of $35 billion worth of seven-year notes on Thursday, revealing the sale attracted above average demand.

The seven-year note auction drew a high yield of 3.517 percent and a bid-to-cover ratio of 2.69.

Last month, the Treasury also sold $35 billion worth of seven-year notes, drawing a high yield of 3.921 percent and a bid-to-cover ratio of 2.45.

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 $42 billion worth of two-year notes and $43 billion worth of five-year notes also attracted well above average demand.