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US Treasury sells US$ 42 billion in 10-year bonds with yield below expectations
Investing.com — The United States government sold US$ 42 billion in 10-year Treasury bonds on Tuesday with a yield lower than expected, as strong international appetite for the American benchmark bond offset a slight decline in demand.
The bonds were awarded at 4.342%, 1.2 basis points below the expected yield, or when-issue rate, of 4.354%, and below the maximum of 4.435% seen in the previous auction.
The bid-to-cover ratio, an indicator of demand, for the auction was 2.60, down from the previous 2.67.
International demand led the bids, accounting for 71.2%, while direct bidders represented 19.88% of the auction.
The yield on the 10-year US Treasury bond fell 2 basis points to 4.32% after the auction results.