U.S. Treasury prices pared earlier losses Wednesday after strong demand produced a record low yield at a $29 billion auction of new seven-year government debt.
The Treasury Department sold the seven-year issue due Sept. 2017 at 1.890 percent below the previous record low at 1.989 percent set in August.
The bid-to-cover ratio, which gauges overall demand at a Treasuries auction, came in at 3.04, the highest reading since the seven-year debt maturity was reintroduced in February 2009.
In the open market, seven-year Treasuries last traded down 2/32 in price to yield 1.85 percent, up from 1.84 percent late Thursday.
© 2016 Thomson/Reuters. All rights reserved.