An auction of seven-year Treasury notes received middling demand Thursday, after investors showed up in droves for an earlier auction of five-year notes. The yield on the seven-year at auction was 0.6 basis point higher than the "when-issued" yield -- the yield just prior to the auction. New seven-year bonds have been met with a weak reception for eight of the last nine auctions, said CRT Capital Group's Ian Lyngen. Trading volume for seven-years was weak for an auction day, with the bond changing hands at 81% of its normal rate, Lyngen said. Primary Treasury dealers took home 29% of the bonds, below the average of 39% from the last four auctions."Generally speaking, it's a harder auction to take down," Lyngen said.
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