FX.co ★ Seven-Year Note Auction Attracts Modestly Below Average Demand

The Treasury Department disclosed that its auctions of two-year and five-year notes earlier this month garnered just below average interest, akin to this month's offer of $44 billion in seven-year notes.

The seven-year note auction produced a top yield of 4.716 percent, alongside a bid-to-cover ratio of 2.48. In contrast, the previous month's issue of $43 billion in seven-year notes fetched a high yield of 4.185 percent and a bid-to-cover ratio of 2.61.

The bid-to-cover ratio is a useful gauge of demand, reflecting the volume of bids per dollar of securities on offer. On average, the bid-to-cover ratio for the past ten seven-year note auctions was 2.55.