Market Nervousness as U.S. Treasury Sells $37 Billion of 10-Year Notes at High Yield

The U.S. Treasury sold $37 billion of 10-year notes at a high yield of 4.296%, with a positive tail of 1.4 basis points. The bid-to-cover ratio was 2.53X, and dealers took on a larger portion of the auction than average. Domestic buyers accounted for 18.87% of the purchases, while international buyers made up 63.83%. The auction grade was D+, indicating below-average performance. The results suggest some apprehension among investors, possibly due to the upcoming Fed meeting and the lackluster performance of the 3-year note auction.