Ten-Year Note Auction Attracts Below Average Demand

The Treasury sold $39 billion of 10-year notes in this month's auction, which attracted below-average demand. Softer-than-typical investor appetite could exert modest upward pressure on 10-year yields (likely a small number of bps) and is primarily a Treasury-sector development; monitor upcoming auctions for confirmation of a trend.

Analysis

The Treasury sold $39 billion of 10-year notes in this month's auction, which attracted below-average demand. Softer-than-typical investor appetite could exert modest upward pressure on 10-year yields (likely a small number of bps) and is primarily a Treasury-sector development; monitor upcoming auctions for confirmation of a trend.