The U.S. Treasury announced the sale of $44 billion in seven-year bonds, amid demand that fell short of the average seen in recent auctions.
The yield on the new bonds was 5.085%, while the bid-to-cover ratio was 2.42.
This ratio measures the volume of subscription orders relative to the value of bonds offered for sale; therefore, its decline reflects reduced demand for the offering.
Last month, the Treasury sold $44 billion in bonds of the same class, with a yield of 4.512% and a subscription coverage ratio of 2.5 times, according to the German Press Agency.
Similarly, the average coverage ratio for the last 10 offerings of seven-year bonds was 2.5 times, placing the result of the new offering below that level.
The announcement followed the issuance of $69 billion in two-year bonds and $70 billion in five-year bonds during the same week.
While demand for the two-year bonds was close to average, demand for the five-year bonds was also below average.
These results highlight the varying investor appetite for different maturities of U.S. Treasury bonds.
Yields on seven-year bonds rose compared to last month’s offering.
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