Following auctions of $26 billion worth of two-year notes and $34 billion worth of five-year notes on Monday, the Treasury Department sold $28 billion worth of seven-year notes on Tuesday, attracting below average demand.
The seven-year note auction drew a high yield of 2.230 percent and a bid-to-cover ratio of 2.36 percent.
Last month, the Treasury also sold $28 billion worth of seven-year notes, drawing a high yield of 2.280 percent and a bid-to-cover ratio of 2.39.
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 2.53.
The material has been provided by InstaForex Company – www.instaforex.com
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