Treasury 10-year yield drops to 2.859% in reissue

Markets 7/11/2018, 7:23 PM
Treasury 10-year yield drops to 2.859% in reissue

The Department of the Treasury in Washington attracted bids 2.57 times higher than the $22 billion package in the third-round auction of securities maturing in May 2028. The widely watched bid-to-cover ratio compares to 2.59 from the first reissue, according to data released in the United States on Wednesday.

The high yield for the note maturing in nine years and ten months was 2.859%, after 2.962% from the operation conducted last month. The gauge declined only slightly from the when-issued level in the bidding. Indirect bidders – a category including foreign central banks and international monetary authorities, purchased 65.04% of the competitive segment, the most since March. Direct participants took 10.45%, with the remaining 24.51% for primary dealers, who took home the smallest share in six months.

In market trading, the yield curve flattened some more and debt prices followed the broad selloff. The yield on two-year US note rose 1.2 basis points to 2.582%. The benchmark 10-year note yielded 2.853% or 0.4 points more for the day, compared to a retreat of 0.1 points for the 30-year bond. Equivalent futures moved 0.01%, 0.03% and 0.02%, respectively, to negative territory.

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