Yields on U.S. Treasury seven-year notes sold at auction rose to an almost two year high as investors grow increasingly uneasy about the long-term economic outlook.

The U.S. Treasury Department on Thursday sold notes at auction that yield 4.512%, the highest since December 2024, when it cleared at 4.532%.

The yield was above the 4.508% level the seven-year was trading at before the sale, on a when-issued basis. The difference, or tail, indicates bidders demanded a higher return for the risk of holding long-term government debt.

The bid-to-cover ratio, another measure of demand, was 2.50, in line with the prior six-month average of 2.49.

The Treasury auctioned $44 billion in seven-year notes, as it usually does at the end of each month.

Indirect bidders, a group that includes foreign buyers, absorbed 60.8% of the $42.9 billion in bids accepted in the competitive tender, down from a previous average of 64.6%.