U.S. government debt prices were higher on Thursday, as investors looked to a speech on inflation and policy from U.S. Federal Reserve Chair Janet Yellen, one week after the Fed surprised markets and helped stir up new fears of deflation.
The Treasury Department auctioned $29 billion in seven-year notes at a high yield of 1.813 percent. The bid-to-cover ratio, an indicator of demand, was 2.51 and above the recent average of 2.45.
Traders are particularly eyeing her comments on inflation in the 5 p.m. ET speech at the University of Massachusetts, where the audience will not be able to ask questions.