The Treasury Department announced that this month's auction of long-term securities, including $43 billion worth of seven-year notes, saw slightly higher than average demand, concluding this week's announcements on auction results.
This seven-year note auction resulted in a high yield of 4.185 percent and a bid-to-cover ratio of 2.61, indicating the degree of demand. This compares to last month's figures where the Treasury auctioned off $42 billion worth of the same notes, which led to a high yield of 4.327 percent and a bid-to-cover ratio of 2.58.
For context, the bid-to-cover ratio is an indication of demand, showing the volume of bids for each dollar's worth of securities on offer.
Over the last ten auctions, seven-year note auctions have seen an average bid-to-cover ratio of 2.55.
In related news, the Treasury earlier this week disclosed that the current month's auctions of $66 billion in two-year notes and $67 billion in five-year notes drew less than average demand.
