The U.S. Treasury recently auctioned $42 billion in 10-year bonds, resulting in a yield of 4.632%. This was slightly higher than the pre-auction trading level of 4.623%. Following the auction, Treasury prices dipped slightly, pushing the 10-year bond yield back above 4.63%, marking a 10 basis point increase for the day.
In terms of allocation, primary dealers were awarded 14.8% of the bonds, which is slightly lower than previous auctions. Indirect bidders, typically including foreign central banks, increased their share to 71.5%, while direct bidders saw their allocation drop to 13.6%.
The bid-to-cover ratio, a measure of demand, stood at 2.48 times, which is nearly in line with the average of 2.49 times from the last six auctions.
