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.
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