By Vivien Lou Chen
A $39 billion sale of 10-year Treasury notes was met with poor demand Tuesday afternoon, dashing expectations that buyers would continue to step in amid an onslaught of supply.
The auction tailed by 1.1 basis points in a sign that demand for the notes was low. Indirect bidders took a below-average share of 64.3%, according to Tom di Galoma, co-head of global rates trading at BTIG in New York. Meanwhile, dealers stepped in to take 17.1%, which was above average, and direct bidders took 18.6%.
Treasury yields remained higher on the day immediately after the auction results came in. The 10-year rate was up more than 6 basis points at around 4.17%.
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