2018.04.2620:25:00UTC+00U.S. Government Bonds Rise as Recent Climb Draws Back Buyers

U.S. government bonds increased on Thursday as yields at multiyear peaks attracted buyers.

The yield on the benchmark 10-year Treasury note snapped a streak of six consecutive gains, dropping to 2.990 percent from 3.026 percent on Wednesday. That represented the highest closing yield on the security since Dec. 31, 2013. Yields drop as bond prices rise.

Yields remained lower after European Central Bank President Mario Draghi said policy makers needed to better understand what has caused a moderation in economic growth in the region before they can decide on the future of the bank's bond-buying program. Yields moved lower even as economic data released Thursday were broadly positive.

The U.S. Treasury Department sold $29 billion in seven-year notes to strong investor demand at a yield of 2.952 percent, the highest in eight years. The seven-year auction marked the final leg of this week's $96 billion in fixed-rate coupon-bearing supply.

The government raised the amount of notes and bonds by $42 billion in the three months starting with February. Analysts expect the government will be announcing additional increases next week when it lays out its borrowing plans for the following three months.

The two-year yield was slightly higher at 2.492 percent after peaking at 2.508 percent the previous day, a level last seen in September 2008.

The 30-year yield fell 3 basis points at 3.178 percent. It hit a two-month high at 3.219 percent on Wednesday.