Seven-year Yields Rise After Auction Sees Average Demand

Yields for seven-year U.S. Treasury notes rose Wednesday after an auction of $29 billion in new seven-year notes saw modest demand. Indirect bidders, a group that includes foreign central banks, didn't show up in large numbers, like they did at Tuesday's auction of five-year notes. Treasury yields rise as prices fall. The bid-cover ratio, an indicator of demand, was 2.63, compared to an average of 2.51 from the past four auctions. Indirect bidders took home 50% of what they bid for, compared to an average of 48%. CRT Capital Group's Ian Lyngen called it "[a] very average auction" in a research note Wednesday. Seven-year [s:7_year] yield gained about 1.5 basis points from its pre-auction level.