The Treasury Department recently announced that the monthly auction of seven-year notes, totaling $41 billion, experienced slightly higher demand than usual. This follows less robust interest in this month's auctions of two-year and five-year notes earlier in the week.
The seven-year notes garnered a high yield of 4.109 percent and a bid-to-cover ratio of 2.57. For reference, the bid-to-cover ratio measures demand, indicating the number of bids for each dollar's worth of securities sold. The higher the ratio, the greater the demand.
In contrast, the prior month saw the sale of $40 billion worth of seven-year notes, which drew a high yield of 3.859 percent and a bid-to-cover ratio of 2.50. On average, the ten most recent seven-year note auctions had a bid-to-cover ratio of 2.51, revealing this month's auction as slightly more successful.
On another note, the Treasury Department disclosed that the recent auctions of two-year notes, valued at $60 billion, and five-year notes, amounting to $61 billion, had noticeably lower demand compared to average.
