Yields Rise at 7-Year Treasury Note Auction

December 19, 2012 by Paul Ausick

US Treasury buildingToday’s auction of $29 billion in seven-year U.S. Treasury notes sold out at a yield of 1.233%. The bid-to-cover ratio of 2.72 was only slightly lower than the average ratio of 2.68 from the last six sales.

Prior to the sale, bonds yields were slightly lower on the 10-year and 30-year notes, with both down just 3 basis points. The 10-year notes were yielding 1.79% and the 30-year notes 2.97%. Yields on U.S. 10-year notes topped 1.84% yesterday as hopes rose for a deal on the U.S. fiscal cliff.

At today’s auction, primary dealers took about $11 billion in seven-year notes, while direct bidders took $6.7 billion (about 23%) and indirect bidders took $11.6 billion (about 40%). The direct bidder portion was substantially higher than the 14.4% average for the last six sales, and the indirect portion of 39.9% was essentially at the average.

Paul Ausick

Essential Tips for Investing: Sponsored

A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.

Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.