The US Treasury sold 10-year notes at a high yield of 4.683%, just above the when-issued level going into the sale. Demand came in stronger than average on several key metrics, earning the auction a B+ grade.
The Treasury's 10-year note auction priced at a high yield of 4.683%, against a when-issued yield of 4.682% at the time of the sale. That left a tail of 0.1 basis points, versus an average tail of 0.3 basis points.
Bid-to-cover, a gauge of overall demand relative to the amount offered, came in at 2.53 times, above the six-month average of 2.47 times.
Demand skewed toward foreign buyers. Indirect bidders, who typically represent international demand, took 76.7% of the auction, above their 71.3% average. Direct bidders, a proxy for domestic investors, took a smaller share, with directs at 14.7% versus a 17.7% average.
Primary dealers, who absorb whatever the market doesn't take up, were left holding less than usual. Dealers took 8.6% of the auction, below their 11.0% average, which the source called the best part of the sale and the basis for the auction's overall B+ grade.
Source: Investinglive
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