The U.S. Treasury Department on Thursday sold $13 billion of 10-year Treasury Inflation-Protected Securities at a yield of 0.200 percent, which was the lowest yield since a 10-year TIPS auction in May 2013, Treasury data showed.
Demand for this reopened TIPS issue was extremely strong with the share of purchase from fund managers and other indirect bidders at 75.71 percent, the biggest for this group since these data became available.
Benchmark 10-year Treasury yields were last at 1.97 percent, up 2 basis points from late Wednesday. The yield hit 1.9 percent, its lowest since Feb. 9, early in the session.
U.S. three-year note yields were last at 0.99 percent, from a yield of 0.94 percent late Wednesday.
U.S. 30-year bond yields slid further, while benchmark 10-year yields edged lower, after the Fed cut its inflation outlook for 2015 and reduced expected U.S. economic growth on Wednesday in a statement following its latest two-day policy meeting.