Overview
- The U.S. Treasury’s 10‑year auction cleared at a 5.020% yield on Tuesday, Nov. 10, with a 1 basis-point positive tail that showed yields came in slightly higher than the pre-auction level.
- The Treasury set a 5% coupon on the new 10‑year notes, the highest coupon since 2006, as it sold $42 billion of paper into the higher-yield environment.
- Auction demand weakened as the 10‑year bid-to-cover ratio fell to 2.46 from a recent average of 2.54, and foreign or indirect buyers pulled back while direct domestic buyers absorbed a larger share.
- The three‑year sale on Nov. 9 cleared at 4.627% with a 2.53 bid-to-cover ratio, showing milder demand but lower yield than October’s three‑year result and similar small tails.
- Investors and markets have repriced expectations for Fed policy, lowering the odds of near-term rate cuts for intermediate maturities and making future Treasury auctions and Fed communications key signals to watch.