Yields on US bonds rise after 7-year debt auction

by Karen Brettel

NEW YORK, Dec 29 (Reuters) – Long-term US Treasury yields rose on Wednesday after selling $56 billion in 7-year notes, an auction with weak demand, as risk confidence strengthened despite a sharp spread. remained. The Omron version of the coronavirus.

* The seven-year loan was auctioned at a maximum rate of 1.48%, nearly two basis points higher than its pre-auction yield.

* The Treasury Department on Monday saw slightly weaker demand for the $56 billion 2-year note auction and Tuesday’s $57 billion sale of 5-year notes. Both sales were hit by a liquidity crunch, as many traders and investors went on holidays for Christmas and New Years.

* The yield on the 7-year note rose to 1,472%, the highest level since December 9.

* Return on 10-year government debt rose to 1.558%, the highest not seen since December 9; While the 30-year yield hit 1.971%, the highest level since November 24.

* 2-year Treasury returns, which are highly sensitive to interest rate volatility, rose to 0.764%, their highest level since March 2020.

* The yield curve between 2- and 10-year bonds stabilized by 75 basis points, after narrowing to 71 points on Tuesday, the lowest yield gap since November 23.

(Edited in Spanish by Marion Giraldo and Javier Lira)