The latest 10-year note sale drew solid demand but saw a smaller-than-average tail of 0.1 basis points.
The US Treasury sold $42 billion of 10-year notes at a high yield of 4.683%, slightly above the when-issued rate of 4.682%. The tail of 0.1 basis points was below the six-month average of 0.3 basis points, signaling modest price concession.
Demand metrics improved, with a bid-to-cover ratio of 2.53x compared to the six-month average of 2.47x. Indirect bidders took 76.7% of the auction, up from a 71.3% average, while dealers absorbed 8.6%, below the 11.0% average.
The auction received a B+ grade, reflecting steady investor appetite amid elevated yields.