U.S. Treasury yields saw a slight increase, reversing earlier trends that had pushed the yields on 5- to 30-year bonds to multi-month highs. The strong demand for the final interest-bearing bond auction of the year, specifically the 7-year Treasury, was a key factor in this reversal.
Shortly after New York trading hours, yields across various maturities declined, with the 7-year yield leading the drop by over 2 basis points. The 10-year Treasury yield fell nearly 2 basis points to 4.57%, having previously risen 5 basis points to its highest level since May.
The auction for the 7-year Treasury concluded with a yield of 4.532%, the highest since May, yet about 2 basis points lower than expected, indicating strong demand. Additionally, upcoming month-end index rebalancing might have encouraged investor purchases, potentially extending the duration by 0.07 years.
