Seven-Year Note Auction Attracts Typical Demand

By | December 28, 2017

Rounding off this week’s series of long-lasting securities auctions, the Treasury Department sold $28 billion worth of seven-year notes on Thursday, attracting typical need.

The seven-year note auction drew a high yield of 2.370 percent and a bid-to-cover ratio of 2.55.

The Treasury also sold $28 billion worth of seven-year notes last month, drawing a high yield of 2.230 percent and a bid-to-cover ratio of 2.36.

The bid-to-cover ratio is a step of demand that indicates the quantity of quotes for each dollar worth of securities being offered.

The ten previous seven-year note auctions had an average bid-to-cover ratio of 2.52.

Today’s seven-year note auction came after auctions of $26 billion worth of two-year notes and $34 billion worth of five-year notes earlier this week both drew in below par demand.

The material has been provided by InstaForex Business – www.instaforex.com

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