Treasury Dept auctions $28 billion of 7-year notes at a high yield of 1.653%

Bond traders at CME Group
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U.S. government debt prices were lower on Thursday as investors digested the release of several pieces of data and a bond auction.

Prior to the auction, the yield on the benchmark 10-year Treasury note, which moves inversely to its price, was higher at 1.84 percent, while the yield on the 30-year Treasury bond was also higher, near 2.5973 percent. The benchmark yield also hit 1.87 percent, its highest intraday level since May 31.

Earlier, the yield on the two-year Treasury note briefly hit 0.9 percent in midday trading. It last traded near 0.8759 percent.

The Treasury Department auctioned $28 billion of seven-year notes at a high yield of 1.653 percent, its highest level since January.

The bid-to-cover ratio, an indicator of demand, was 2.49, in-line with its recent average.

Indirect bidders, which include major central banks, were awarded 61.5 percent, slightly above a recent average of 61 percent. Direct bidders, which include domestic money managers, bought 13.2 percent, also above a recent average of 13 percent.

Symbol
Yield
 
Change
%Change
US 3-MO
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US 1-YR
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US 2-YR
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US 5-YR
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US 10-YR
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US 30-YR
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On the data front, initial jobless claims fell 3,000 to 258,000, while durable goods for September unexpectedly fell. Pending home sales rose 1.5 percent in September, above expectations for an increase of 1.2 percent, according to economists polled by Reuters.

The Treasury Department is also set to auction $28 billion in seven-year notes later on Thursday.

U.S. Treasury yields were tracking other sovereign yields across the globe, including UK Gilts and German Bunds. The yield on the UK 10-year Gilt was higher near 1.15 percent, while the 10-year German Bund yield sat near 0.17 percent.

Yields received a boost from stronger-than-expected GDP data from the UK and from comments made by Haruhiko Kuroda, governor of the Bank of Japan. He said the BOJ may not increase its quantitative easing program.

Oil prices drew support from indicators that OPEC's Gulf members are willing to cut their output by 4 percent as well as a drop in U.S. crude inventories. U.S. crude futures settled up 1.1 percent at $49.72, snapping a three-day losing streak.

— CNBC's Gina Francolla and Christopher Hayes, and Reuters contributed to this report.