The US Treasury's auction of $44 billion in 7-year notes produced a high yield of 4.473%, marking the highest level since December 2024.

This yield exceeded the "when-issued" level of 4.471% at the 1:00 PM New York bidding deadline, suggesting demand was slightly softer than anticipated. However, the when-issued yield had already dropped by more than 6 basis points during the trading day.

Despite the auction results, US Treasuries maintained their upward momentum, with yields hovering near their intraday lows. Primary dealers saw their allocation rise to 12.9%, up from the previous sale.

Direct bidders' allotment decreased to 16.9%, offsetting the increase from indirect bidders, whose share climbed to 70.1%. The bid-to-cover ratio came in at 2.49 times, aligning with the average of the prior six 7-year note auctions.