U.S. Treasuries Auction Reaction
The 10-yr yield is just off the top of today’s three-basis point range in immediate reaction to the just completed $39 bln 10-yr note reopening. The sale met good demand with the high yield stopping through the when-issued yield by a tenth of a basis point. The bid-to-cover ratio (2.59x vs 2.48x average) and indirect takedown (78.2% vs 68.8% average) were well above average.
Yields After:
2-yr: +1 bp to 4.13%
3-yr: UNCH at 4.18%
5-yr: +1 bp to 4.26%
10-yr: +1 bp to 4.54%
30-yr: +1 bp to 5.02%
Treasury Auction Results
$39 bln 10-year Treasury note reopening:
High yield: 4.538% (When-Issued: 4.539%)
Bid-to-cover: 2.57
Indirect bid: 78.2%
Direct bid: 12.3%
Average results of previous 12 auctions:
High yield: 4.230%
Bid-to-cover: 2.48
Indirect bid: 68.8%
Direct bid: 21.0%
Prior auction results:
High yield: 4.468%
Bid-to-cover: 2.40
Indirect bid: 64.0%
Direct bid: 24.1%