US sells USD 39bln of 10-year notes; stop-through 0.7bps

• High Yield: 4.173% (prev. 4.175%, six-auction avg. 4.169%). WI: 4.180%.
• Tail: -0.7bps (prev. 0.0bps, six-auction avg. 0.1bps)
• Bid-to-Cover: 2.55x (prev. 2.55x, six-auction avg. 2.51x)
• Dealers: 5.9% (prev. 8.8%, six-auction avg. 9.9%)
• Directs: 24.5% (prev. 21.0%, six-auction avg. 20.6%)
• Indirects: 69.6% (prev. 70.2%, six-auction avg. 69.5%)

The recent auction saw the U.S. sell $39 billion in 10-year notes with a stop-through of 0.7 basis points, indicating a strong demand as bidders accepted yields slightly lower than expected. The consistent bid-to-cover ratio suggests solid investor interest, although a decrease in dealer participation raises potential concerns about market liquidity. Overall, this auction outcome reinforces a stable demand environment for U.S. Treasuries, which could impact future yields and monetary policy outlooks.