U.S. sees good demand for 7-year note sale
from MarketWatch.com - MarketPulse
SAN FRANCISCO (MarketWatch) -- The Treasury Department sold $29 billion in 7-year notes on Thursday at a yield of 1.045%, receiving strong demand in the last auction of the week. Bidders offered to buy 2.81 times the amount of debt sold, compared with an average of 2.65 times at the last four sales, according to CRT Capital Group. Indirect bidders, a group which includes foreign central banks, bought 39.1% of the auction, versus an average of 39.5%. Direct bidders, a group which includes domestic money managers, purchased another 19.7%, the highest since at least 2010 and compared with 15% on average. A higher proportion of an auction going to indirect and direct bidders, as opposed to primary dealers, is considered good for the market and the government -- the issuer. After the auction, the broader bond market held onto mild gains. Yields on 10-year notes , which move inversely to prices, declined 1 basis point to 1.62%.