U.S. sells 7-year notes at 1.791%; bonds drop more

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U.S. sells 7-year notes at 1.791%; bonds drop more
NEW YORK (MarketWatch) -- The Treasury Department sold $29 billion in 7-year notes on Thursday at a yield of 1.791%, higher than what traders expected. Bidders offered to buy 2.59 times the amount of debt sold, compared to an average of 2.75 times at the last four sales of 7-year notes, all for the same amount. Indirect bidders, a group that includes foreign central banks, bought 33.9% of the auction, down from an average of 41.3%. Direct bidders, which includes domestic money managers purchased another 11.9%, compared to 10.7% on average. After the auction -- the last of the week -- the broader bond market extended its steep losses. Yields on 10-year notes , which move inversely to prices, rose 14 basis points to 2.35%, and 2.31% before the auction.