Treasury Demand Weakens at Note Sales Amid Fed Taper Speculation
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Treasury’s sale of $99 Billion in two-, five- and seven-year notes this week met with weaker-than-average demand amid speculation the Federal Reserve may indicate a reduction of its bond-buying program.
The bid-to-cover ratio on the $29 billion in seven-year notes sold yesterday, which gauges demand by comparing the amount bid with the amount offered, was 2.54, the lowest since May 2009. The ratios were also below the averages of the prior 10 auctions on the sales of $35 billion in five-year and $35 billion in two-year notes the preceding two days.