US Treasurys rise after Steve Mnuchin speaks and 7-year note auction

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U.S. government debt prices were higher on Thursday as investors digested the 7-year note auction.

The Treasury Department auctioned $28 billion in 7-year notes at a high yield of 2.197 percent. The bid-to-cover ratio, an indicator of demand, was 2.49.

Indirect bidders, which include major central banks, were awarded 63.8 percent. Direct bidders, which includes domestic money managers, bought 11.4 percent.

The yield on the 7-year note was lower at around 2.184 percent after the auction.

The yield on the benchmark 10-year Treasury note was lower at around 2.381 percent, while the yield on the 30-year Treasury bond was also lower at 3.019 percent. Yields move inversely to prices.

US 10-YR
US 30-YR

On the data front, initial jobless claims came in at 244,000, slightly higher than the expected 241,000.

Investors also mulled over comments from Treasury Secretary Steve Mnuchin.

Mnuchin said on CNBC's "Squawk Box" that he wants to see "very significant" tax reform passed before Congress' August recess.

"We want to get this done by the August recess. We've been working closely with the leadership in the House and the Senate and we're looking at a combined plan," he said.

In oil markets, Brent crude traded at around $56.47 a barrel on Thursday, up 1.13 percent, while U.S. crude was around $54.35 a barrel, up 1.42 percent.

—CNBC's Jacob Pramuk and Luqman Adeniyi contributed to this report.