US 10Y Note Auction Hits Highest Yield Since 2000 Amid Record Foreign Demand

Key Facts

1The 10-year note auction stopped at a high yield of 5.300%, the highest since November 2000.

2Indirect bidders were awarded 80.3% of the auction, marking the 4th highest level on record.

3Primary dealers were left with only 2.5%, the lowest share in 10-year auction history.

The US Treasury auctioned $39 billion in 10-year notes at a high yield of 5.300%, marking the highest level since November 2000. ZeroHedge reported that the auction stopped through the when-issued price by 1.7 basis points, a result that provided relief to bond markets and eased fears of a failed auction.

Indirect bidders, which include foreign investors, were awarded 80.3% of the auction, representing the fourth-highest level on record. Consequently, the share left to primary dealers fell to just 2.5%, the lowest in the history of 10-year note auctions, highlighting exceptionally robust international demand.