U.S. Treasury yields moved lower Thursday after the Treasury Department saw solid demand for a sale of seven-year notes.
The yield on the benchmark 10-year Treasury note hovered below 2 percent after the auction and after durable goods orders came in far weaker than expected, a further sign of the manufacturing sector slowdown. The 30-year bond yield fell to about 2.7874 percent, while the two-year note yield fell to 0.8287 percent.
The Treasury auctioned $29 billion in seven-year notes at a high yield of 1.759 percent. The bid-to-cover ratio, an indicator of demand, was 2.63, versus a recent average of 2.45.
Indirect bidders, which include major central banks, were awarded 69.4 percent against a recent average of 54 percent. Direct bidders, including domestic money managers, bought 14.8 percent.