Record 10-Year Treasury Auction Gets Scooped Up by Investors
- Bid-to-cover ratio, a measure of demand, is above average
- Third leg of quarterly refunding on Thursday, with long bond
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Investors scooped up a record $26 billion 10-year Treasury auction Wednesday, showing that swelling U.S. government issuance has yet to put pressure on the nation’s long-term borrowing costs.
The sale of 2028 notes was $1 billion larger than the Treasury’s May offering, which matched the previous record set in 2009. But a gauge of demand was above the average for the last four quarterly refunding auctions. The sale drew a yield of 2.96 percent, in line with where the new security was trading in the minutes before the auction, signaling that investor appetite at around the 3 percent level continues.