A day following the report of below-average demand for this month's two-year and five-year note auctions, the Treasury Department on Wednesday announced that the auction of $44 billion in seven-year notes also experienced subpar interest.
The seven-year note auction recorded a high yield of 4.650% and a bid-to-cover ratio of 2.43.
In comparison, last month’s seven-year note auction, which also involved $44 billion, yielded a high of 4.716% with a bid-to-cover ratio of 2.48.
The bid-to-cover ratio, a gauge of demand, represents the number of bids for every dollar of securities sold.
The ten previous seven-year note auctions had averaged a bid-to-cover ratio of 2.55.
On Tuesday, the Treasury disclosed that this month's auctions of $69 billion in two-year notes and $70 billion in five-year notes also saw significantly below-average demand.
