Error while creating new ember application using ember-cli

I installed ember-cli tools, When i tried to create a new application using ember new book-app i get the following error

installing app
  ......
  create tests/unit/.gitkeep
  create vendor/.gitkeep
Successfully initialized git.
Installed packages for tooling via npm.
Error creating new application. Removing generated directory `./book-app`
Package ember not found
Error: Package ember not found
    at createError (/usr/local/lib/node_modules/ember-cli/node_modules/bower/lib/util/createError.js:4:15)
    at /usr/local/lib/node_modules/ember-cli/node_modules/bower/lib/core/resolverFactory.js:206:23
    at _fulfilled (/usr/local/lib/node_modules/ember-cli/node_modules/bower/lib/node_modules/q/q.js:834:54)
    at self.promiseDispatch.done (/usr/local/lib/node_modules/ember-cli/node_modules/bower/lib/node_modules/q/q.js:863:30)
    at Promise.promise.promiseDispatch (/usr/local/lib/node_modules/ember-cli/node_modules/bower/lib/node_modules/q/q.js:796:13)
    at /usr/local/lib/node_modules/ember-cli/node_modules/bower/lib/node_modules/q/q.js:604:44
    at runSingle (/usr/local/lib/node_modules/ember-cli/node_modules/bower/lib/node_modules/q/q.js:137:13)
    at flush (/usr/local/lib/node_modules/ember-cli/node_modules/bower/lib/node_modules/q/q.js:125:13)
    at nextTickCallbackWith0Args (node.js:419:9)
    at process._tickCallback (node.js:348:13)

I am not sure what the problem is. I am using ember-cli 2.7.0