U.S. Treasury Auctions a New Supply of U.S. 10-year Notes

Yields rose on Wednesday, with benchmark and longer-dated yields rising the most, as traders absorbed a new supply of U.S. 10-year notes and continued to anticipate a more hawkish statement from the Federal Reserve next week.

The Treasury Department auctioned $21 billion in 10-year notes at a high yield of 2.535 percent, versus 2.439 percent in August. The bid-to-cover ratio, an indicator of demand, was 2.71, compared to 2.83 last month.

Indirect bidders, which include major central banks, were awarded 53.01 percent of the supply, their biggest slice since December 2011. Direct bidders, on the other hand, took home 13.47 percent, the group’s smallest share since December.

CNBC

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.