The Treasury Department concluded its announcements for the week regarding its long-term securities auctions by disclosing that the sale of $44 billion in seven-year notes this month garnered stronger than average interest. The auction resulted in a high yield of 4.183 percent with a bid-to-cover ratio of 2.71.
In comparison, last month's auction of $44 billion in seven-year notes achieved a slightly higher yield of 4.215 percent and a bid-to-cover ratio of 2.74. The bid-to-cover ratio serves as an indicator of demand, reflecting the number of bids received for each dollar of securities offered.
Over the last ten seven-year note auctions, the average bid-to-cover ratio was 2.58, indicating that this month's auction surpassed typical demand levels. Additionally, earlier this week, the Treasury reported that its auctions of $69 billion in two-year notes and $70 billion in five-year notes similarly drew higher than usual demand.