Seven-year banknote auction attracts strong demand | 29.10.24

(RTTNews) – Capping off this week’s series of announcements on long-term securities auction results, the Treasury Department announced Tuesday that this month’s auction of $44 billion of seven-year bonds attracted well above average demand.

The auction of seven-year bonds delivered a high yield of 4.215 percent and a bid-to-cover ratio of 2.74

Last month, the US Treasury also sold $44 billion of seven-year bonds, yielding a high yield of 3.668 percent and a bid-to-cover ratio of 2.63.

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 2.55.

On Monday, the Treasury Department announced the results of this month’s auctions of $69 billion in two-year bonds and $70 billion in five-year bonds.

While the auction of two-year notes attracted below-average demand, the auction of five-year notes attracted roughly average demand.