The US Treasury's $44 billion auction of 7-year notes drew a high yield of 5.085%, the highest since the maturity was reintroduced in 2009, according to Bloomberg News.

The pre-auction yield at the bidding deadline of 1 p.m. New York time was 5.078%, indicating demand fell short of expectations.

At the bidding deadline, the when-issued yield was little changed on the day, and the market's reaction to the auction results was minimal.

Primary dealers were allotted 12.5%, up from the previous auction; indirect bidders' allotment fell to 57.2%, while direct bidders' allotment rose to 30.2%.

The bid-to-cover ratio was 2.42 times, compared with an average of 2.49 times over the previous six auctions of the same maturity.