Treasuries Weather Weak Demand for Seven-Year Notes, Await Fed

Treasuries held most of the advance that’s driven yields toward their lowest levels of the year in recent weeks despite weak demand for an auction of seven-year notes, anticipating a Federal Reserve interest-rate cut on Wednesday.

Yields were little changed on the day after the $44 billion auction, which drew 3.790%, nearly a basis point higher than its yield in pre-auction trading shortly before 1 p.m. New York time, the bidding deadline. The higher-than-indicated yield means investor demand fell short of what was expected.