Seven-Year Note Auction Attracts Average Demand

The Treasury Department finished off this week’s series of long-term securities auctions with the sale of $29 billion worth of seven-year notes on Thursday, attracting averaged demand.

The seven-year note auction drew a high yield of 2.021 percent and a bid-to-cover ratio of 2.47.

The Treasury also sold $29 billion worth of seven-year notes last month, drawing a high yield of 2.153 percent and a bid-to-cover ratio of 2.38.

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 2.44.

Today’s seven-year note auction came after the Treasury sold $26 billion worth of two-year notes on Tuesday and $35 billion worth of five-year notes on Wednesday.

The material has been provided by InstaForex Company – www.instaforex.com

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