US Treasury Sells $44 Billion in Seven-Year Notes at 5.085% High Yield

The US Department of the Treasury sold $44 billion in seven-year notes at a high yield of 5.085%, reflecting softer-than-average investor demand. The auction generated a bid-to-cover ratio of 2.42, down from the prior month's 2.50 ratio when yields reached 4.512%. The clearing yield tailed the 5.078% When-Issued level by 0.7 basis points. Indirect bidding dropped to 57.2%, leaving primary dealers to absorb 12.53% of the issuance. The sale concluded a week of debt auctions that included $69 billion in two-year notes and $70 billion in five-year notes.