U.S. Treasurys traded slightly higher on Thursday after a Treasury Department sale.
The Department auctioned $28 billion in seven-year notes at a high yield of 2.335 percent on Thursday. The bid-to-cover ratio, an indicator of demand, was 2.45, the lowest since last August.
Indirect bidders, which include major central banks, were awarded 72.8 percent, the highest on record, according to Reuters. Direct bidders, which includes domestic money managers, bought 6.6 percent.
The yield on the seven-year note yield traded around 2.30 percent following the sale.
"After yesterday's soft 5 yr note auction, the 7 yr note auction was a mixed bag but 2 of the 3 components that markets focus on were slightly better," Peter Boockvar, chief market analyst at The Lindsey Group, said in a note.
"Bottom line, in light of the Treasury weakness this week leading up to the auction and the sharp selloff we saw in European sovereign bonds today, the market was set up for a disappointing auction. Not getting it has resulted in a bounce in prices and a drop in yields to little changed on the day," Boockvar said.