US treasury sells $39 billion of 10 year notes at a yield of 4.276%

• High yield 4.276%
• WI level at the time of the auction: 4.286%
• Tail -1.0 basis points versus six-auction average 0.4 bps
• Bid-to-Cover 2.58X versus six-auction average 2.52x
• Dealers 11.53% versus six-auction average 16.1%. Least since August 2023
• Directs 20.86% versus six-auction average 16.7%
• Indirects 67.61% versus six-auction average 67.2%

AUCTION GRADE: A+

Nothing wrong with this auction with a -1.0 basis point tail. Dealers take a small amount. Domestic demand is well above its six-month average and international demand is marginally above the six-month average. The bid to cover is also better than the average.

2 for 2 in the auctions this week. The final coupon auction will be tomorrow at 1 PM when the treasury auctions off 30 year bonds

The USDJPY has come off a bit after testing the swing target at 161.73.