US 10-y Bond Auction

Bonds rallied — erasing some of the losses caused by last week’s strong employment data — after an auction of 10-year notes drew unusually strong demand despite its proximity to potentially destabilizing events on Wednesday. The $39 billion 10-year note sale was awarded at 4.438%, compared with a yield of 4.458% in pre-auction trading at 1 p.m. New York time, the bidding deadline. That investors settled for a lower yield indicates excess demand, and yields throughout the market subsequently moved to lower levels. Other auction ...

After yesterday's stellar, stopping through 3Y auction, moments ago the Treasury completed its 10Y reopening of 9-year, 11-month Cusip JZ5, in an auction that was mediocre at best. The high yield of 4.166% was above last month's 4.093% (in fact it was the highest 10Y auction stop of 2024), and also tailed the When Issued 4.157% by 0.9bps, the biggest tail since December 2023. The bid to cover was 2.51, a drop from last month's 2.56 and the lowest since November 2023; it was also below the six-auction average of 2.52. The internals ...