Seven-Year Note Auction Attracts Average Demand

Ahead of the Federal Reserve’s monetary policy announcement on Wednesday, the Treasury Department revealed Tuesday that this month’s auction of $62 billion worth of seven-year notes attracted average demand.

The seven-year note auction drew a high yield of 1.306 percent and a bid-to-cover ratio of 2.31.

Last month, the Treasury also sold $62 billion worth of seven-year notes, drawing a high yield of 1.300 percent and a bid-to-cover ratio of 2.23.

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 2.33.

On Monday, the Treasury revealed this month’s auctions of two-year and five-year notes both attracted below average demand.

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