Wednesday, 12 June 2024

US auctions $38B of 10 year notes at a high yield of 4.438%

by BD Banks

  • High yield:4.438%
  • WI level at the time of the auction: 4.458%
  • Tail -2.0 BPs vs 6 month average of 1.1 bps
  • Bid to cover: 2.60X vs 6-month average or 2.50X
  • Directs: 13.81% vs 6 month average of 17.53%
  • Indirects: 74.6% vs 6 month average of 65.42%
  • Dealers:11.59% vs 6 month average of 17.03%

Auction grade:A-

The only disappointment is that the domestic direct buyers were light, but they were overwhelmed by the international buyers who took a whopping 74.6% of the auction.

Strong demand from international buyers saves the day.

Yields across the curve are now showing:

  • 2-year yield 4.850%, -3.4 basis points
  • 5-year yield 4.435%, -4.5 basis points
  • 10 year yield 4.429%, -3.9 basis points
  • 30-year yield 4.563%, -3.2 basis points

Looking at the US stocks, the NASDAQ index is now up 38 points or 0.22%. Closing in positive territory would be another record close for that index. The S&P index is still lower by -9.4 points or -0.17%. The Dow Industrial Average averages also lower at -254 points or -0.66% at 38611.51

The USD has moved lower.

  • The EURUSD is back above 1.07346. The break below the swing area between 1.0722 and 1.07346 failed. The 1.0755 is the next upside target now.

This article was written by Greg Michalowski at