U.S. Government Sells $49 Billion in Seven-Year Notes

The U.S. government sold $49 billion of seven-year notes on Thursday, achieving a higher-than-expected yield amid cooling demand.

The notes were awarded at 3.770%, surpassing the pre-sale rate of 3.761%, resulting in a tail of 0.9 basis points. However, this was significantly lower than the 4.162% high observed in the previous auction.

The bid to cover ratio, an indicator of demand, declined to 2.50 from 2.64 in the prior auction.

Dealers accounted for 54.24% of the bids, while direct bidders made up 10.02% and indirect bidders represented 35.75%.

The yield on 7-Year notes increased by 3 basis points to 3.764%.

Recent auctions for 2-year and 5-year Treasury notes resulted in a stop through and a small tail, respectively.