Yields Rise at 7-Year Treasury Note Auction

Prior to the sale, bonds yields were slightly lower on the 10-year and 30-year notes, with both down just 3 basis points. The 10-year notes were yielding 1.79% and the 30-year notes 2.97%. Yields on U.S. 10-year notes topped 1.84% yesterday as hopes rose for a deal on the U.S. fiscal cliff.

At today’s auction, primary dealers took about $11 billion in seven-year notes, while direct bidders took $6.7 billion (about 23%) and indirect bidders took $11.6 billion (about 40%). The direct bidder portion was substantially higher than the 14.4% average for the last six sales, and the indirect portion of 39.9% was essentially at the average.

Paul Ausick