Just like the 3 year note auction yesterday the 10 year notes today showed weak result with a high yield of 2.795% accepted for some notes.
The current 10 year note being quoted is at 2.79%.
I am not certain if there is a relationship between rates in the next month or two and weak demand at a treasury auction–this deserves much more study in the future. With weak coverage it must portend issues ahead–but not sure any data could confirm that. Tomorrow we will have a 30 year bond auction.
Here is the Bloomberg snippet on the results.
They should have started selling earlier. In a rising environment, who wants to own anything 2% or higher, even if it is from the gov’t?
I have bought 2% , 9 month treasury secondaries recently. May buy a bit more…The 10 year variety? No thanks for me either.