A disappointing auction of new 30-year bonds on Thursday took some steam out of the credit markets.

The U.S. Treasury awarded $11 billion of new bonds at an average yield of 6.33%. But auction results were seen as disappointing given the 2 basis point difference between the average yield and the high bid. The yield of the new bond rose to 6.36% on a when-issued basis after the auction was completed.

The outstanding 71/8% 30-year bond was yielding 6.44% late Thursday afternoon, up from its record-breaking 6.42% yield on Wednesday. Among shorter-maturity government securities, only three-year and five-year notes showed any rise in yields. The three-year yield rose 8 basis points to 4.44%, and the five-year rose 1 basis point to 5.13%.

A report Thursday said that produce prices fell 0.2% in July and that retail sales rose 0.1% in July and revised 0.2% in June cheered investors.

Stocks prices slid. The Dow Jones industrial average fell 14.26 points to close at 3,569.09.

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