Strong Demand for US 10-Year Treasury Auction as Bid-to-Cover Ratio Rises Significantly
Deep News
Oct 08
The US Treasury auctioned $39 billion of 10-year notes at a high yield of 5.3%, well below the 5.317% when-issued yield at the bidding deadline.
Following the release of the auction results, the 10-year Treasury yield quickly fell to its intraday low, and the earlier steepening trend of the 2-year and 10-year yield curve slightly flattened.
Primary dealers were allotted 2.5%, far below the recent average of 8.5%; indirect bidders received 80.3%, while direct bidders were allotted 17.1%.
The bid-to-cover ratio came in at 2.77 times, significantly higher than the average of 2.55 times over the past six reopenings.
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