FX.co ★ Seven-Year Note Auction Attracts Slightly Above Average Demand

The Treasury Department announced the outcomes of this month's auction of $44 billion in seven-year notes on Tuesday, noting that the sale experienced slightly above-average demand. The auction delivered a high yield of 4.457% and had a bid-to-cover ratio of 2.64. In comparison, last month's sale of an identical $44 billion in seven-year notes yielded a higher 4.532% and a bid-to-cover ratio of 2.76. The bid-to-cover ratio serves as an indicator of demand, representing the volume of bids relative to the dollar amount of securities available for purchase. The average bid-to-cover ratio for the past ten seven-year note auctions was 2.61. Additionally, on Monday, the Treasury disclosed the results for this month's auctions of $69 billion in two-year notes and $70 billion in five-year notes, both reflecting average demand.