The US Treasury sold $42 billion of 10-year notes at auction, with a high yield of 5.02 percent. The result was a little soft, with the high yield landing 1.0 basis point above the when-issued level of 5.01 percent. Demand was also thinner than usual. Bid-to-cover came in at 2.46 times, below the average of 2.60 times.
Dealers and direct bidders
Dealers took a larger share of the auction than usual, at 9.8 percent against an average of 7.45 percent. Direct bidders were the brighter side of the result. They took 29.0 percent of the notes, compared with an average of 15.9 percent. Indirect bidders took 61.2 percent, below their average share of 76.65 percent.
Tail against the average
The tail was 1.0 basis point, against an average stop-through of minus 0.6 basis points for comparable auctions.
Source: US Treasury
