US sells USD 39bln in 10yr notes: Tail 0.2bps

The recent auction of USD 39 billion in 10-year notes saw a high yield of 4.282%, up from 4.217%, suggesting a slight increase in borrowing costs. The tail of 0.2bps, which is down from previous auctions, indicates stronger demand than expected, reflected in the high indirect bidder participation. However, the decline in the bid-to-cover ratio from prior auctions may point to some waning enthusiasm among primary dealers, suggesting a mixed sentiment in the market for longer-duration debt.