Treasury’s Final Auction of Year Draws Highest Yield Since 2011
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Treasury’s $29 billion seven-year note auction, the final government coupon sale of 2013, drew the highest yield in more than two years as the Federal Reserve plans to wrap up its bond-buying by the end of next year.
The notes drew a yield of 2.385 percent, the most since June 2011, exceeding a forecast of 2.374 percent in a Bloomberg News survey of seven of the Fed’s 21 primary dealers who are required to bid at the auctions. The bid-to-cover ratio, which gauges demand by comparing total bids at yesterday’s auction with the amount of securities offered, was 2.45, trailing the average of 2.57 for the previous 10 sales.