Seven-year Treasury Auction Sees Weak Demand

A $29 billion seven-year Treasury note auction received lackluster demand on Thursday, pushing the closing yield higher than the market's expectations. The auction stopped at a yield of 1.792%, 1.3 basis points above the 1.779% expected. Indirect bidders, a group that includes foreign institutions, took down 50.5% of the bid, below the 52% average. Treasury yields were on a steady increase leading into the auction, with 10-year yields rising 7.6 basis points, reaching 1.996% right before the auction. The trend does not appear to be reversed following the weak bid.