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April 10, 2024 at 7:07 PM EDT
20 days ago
10-year Treasury Auction Shows Lower Demand
The auction for the 10-year Treasury was poorly received.
The auction of $39 billion worth of government debt expiring in 10 years was awarded a high yield of 4.560%, 3.1 basis points higher than what was expected or indicated before the auction.
It also surpassed the average of 4.207% in the past six such auctions.
When the government has to offer a higher yield for investors to absorb its debt, it is a bad sign for demand.
The tail—or difference in yield offered versus expected—was rather large this time around.
“The 10 yr auction today was bad,” wrote Peter Boockvar, chief investment officer at Bleakley Financial Group.
The auction for the 3-year note on Tuesday was also poorly received.