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.
Wednesday saw the Fed's post-meeting statement note concerns about a weaker economy and global conditions.
The central bank did not, however, specifically state it would defer rate hikes. The Fed has forecast four rate increases this year while the market expects but one.
On the data front, pending home sales rose just 0.1 percent in December from a downwardly revised November reading, the National Association of Realtors said Thursday.
In oil markets, WTI and Brent crude futures each traded higher amid reports of global production cuts.
--CNBC's Patti Domm contributed to this report