US Treasury’s Biggest-Ever 10-Year Auction Garners Solid Demand
- Auction for $42 billion awarded at 4.093%, below pre-sale rate
- Yields had retreated from near highest levels of past month
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The US government sold a record $42 billion of 10-year notes Wednesday at a lower-than-anticipated yield, soothing investor nerves after a recent rout and indicating confidence that the Federal Reserve will eventually cut interest rates.
The notes were awarded at 4.093%, compared with a yield of about 4.105% moments before 1 p.m. New York time, the bidding deadline. The lower yield indicates stronger demand than traders anticipated. The auction result also broke a streak of tails — or a weaker result for the previous four monthly sales. US Treasuries as a whole held steady as the details were absorbed.