Surge In Foreign Demand Sparks Stellar 10Y Treasury Auction Ahead Of Tomorrow’s CPI
Having seen yields in the secondary market plunge to 3-month lows during the morning, Treasuries were sold ahead of the $38 billion reopening 10-year sale (backup to a When Issued yield of 1.507% – from 1.4705% intraday lows).
Demand was stellar with the bid-to-cover (2.58x) surging to its highest since July 2020…
Today’s high yield was 1.497% (almost 20bps below the 1.684% at the last auction), trading through the WI yield by a very significant 1bps
Indirect demand (65%) surged to its highest since mid 2020…
Due to the surge in indirect demand, dealers were allocated the lowest amount since May 2016…
And bonds were well bid after the auction, with 10Y back below 1.50%…
That is a very aggressive auction ahead of the uncertainty of tomorrow’s CPI print.
Wed, 06/09/2021 – 13:15
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