Auction of seven-year bonds attracts slightly less demand than average

WASHINGTON (dpa-AFX) – The Treasury Department wrapped up this week’s announcements on the results of its long-term securities auctions by reporting Thursday that its $44 billion seven-year bond sale this month drew slightly lower-than-average demand.

The auction of seven-year government bonds produced a high yield of 3.770 percent and a bid-to-cover ratio of 2.50.

Last month, the Treasury also sold $44 billion in seven-year bonds with a high yield of 4.162 percent and a bid-to-cover ratio of 2.64.

The bid-to-cover ratio is a measure of demand. It indicates how many bids there are for each dollar of securities sold.

The ten previous auctions of seven-year government bonds had an average bid-to-cover ratio of 2.55.

Earlier this week, the Treasury Department said its $69 billion two-year bond auction this month drew slightly higher than average demand, while its $70 billion five-year bond auction this month drew average demand.

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