Seven-year bond auction attracts above-average demand | 26.09.24

(RTTNews) – The Treasury Department on Thursday announced the results of this month’s auction of $44 billion worth of seven-year bonds, showing the sale attracted above-average demand.

The auction of seven-year bonds yielded a high yield of 3.668 percent and a bid-to-cover ratio of 2.63.

Last month, the US Treasury also sold $44 billion of seven-year bonds, yielding a high yield of 3.770 percent and a bid-to-cover ratio of 2.50.

The bid-to-cover ratio is a measure of demand that indicates the number of bids for each dollar of securities sold.

The ten previous auctions of seven-year bonds had an average bid-to-cover ratio of 2.53.

Earlier this week, the Treasury Department revealed that this month’s auctions of $69 billion in two-year bonds and $70 billion in five-year bonds both attracted modestly below-average demand.