US seven-year notes bid/cover ratio 2.49 vs. 2.79 previous auction

US seven-year notes bid/cover ratio 2.49 vs. 2.79 previous auction

The US Treasury Department announced the results of its recent seven-year note auction, revealing a notable decline in the bid-to-cover ratio compared to previous auctions. The July 2025 auction saw a bid-to-cover ratio of 2.49, down from the previous auction's ratio of 2.79 [1].

The seven-year note auction was part of the Treasury's ongoing series of long-term securities auctions. This particular auction saw a total of $44 billion worth of securities sold, with the high yield reaching 3.573 percent. The bid-to-cover ratio, a measure of demand that indicates the amount of bids for each dollar worth of securities being sold, has been a key indicator of market sentiment and investor interest in Treasury securities.

The decline in the bid-to-cover ratio suggests that demand for seven-year notes has softened compared to previous auctions. This could be attributed to various factors, including changes in monetary policy, economic conditions, or investor preferences. However, the Treasury's announcement did not provide specific reasons for the decrease in demand.

The Treasury is expected to announce the results of its five-year note auction on Wednesday, July 3, 2025, and its ten-year note auction on Thursday, July 4, 2025. Investors will be closely watching these announcements for further insights into market conditions and the broader economic outlook.

References:
[1] https://www.rttnews.com/3569176/two-year-note-auction-attracts-above-average-demand.aspx