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

  • High Yield: 4.217% (prev. 4.177%, six-auction avg. 4.138%); WI: 4.210%.
  • Tail: 0.7bps (prev. 1.4bps, six-auction avg. 0.3bps)
  • Bid-to-Cover: 2.45x (prev. 2.39x, six-auction avg. 2.48x)
  • Dealers: 12.7% (prev. 13.4%, six-auction avg. 10.3%)
  • Directs: 12.8% (prev. 22.1%, six-auction avg. 20.3%)
  • Indirects: 74.5% (prev. 64.5%, six-auction avg. 69.3%)
Context

The latest auction of 10-year notes saw a slightly higher yield compared to the previous auction, but the tail remained relatively tight at 0.7bps; this suggests continued demand for the notes despite rising yields. Notably, indirect bidders made up a substantial portion of the auction, which reflects healthy appetite among investors, potentially stabilizing yields in the near term. Overall, while the demand metrics are slightly mixed, they still point to a resilient interest in longer-duration assets as the market navigates current macro pressures.

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