Investing.com – The U.S. government sold $44 billion of 7-year bonds on Thursday at lower-than-expected yields as U.S. government bonds continued to absorb demand.
The notes sold at a rate of 4.276%, slightly below the pre-sale or issue rate of 4.279%, but well below the high of 4.650% seen in the previous auction.
In a sign of stronger demand, the auction’s bid-to-cover ratio jumped to 2.58 from 2.43 seen in the previous auction.
International demand led the bidding with the share of indirect bidders amounting to 69.65%, above the average of 64.90%.
The yield fell to 4.282% after trading at the day’s high of about 4.35%.