TLT•The $42 billion 10-year Treasury auction cleared at 5.02%, one basis point above expectations and its widest tail since February. Indirect bidders took 61.2% of the notes, down from 80.3%, while direct bidders bought 29%.
The $42 billion 10-year Treasury auction cleared at 5.02%, one basis point above expectations and its widest tail since February. The bid-to-cover ratio fell to 2.46 from October’s 2.77. Indirect bidders took 61.2%, down from 80.3%, while direct bidders bought 29%, their largest share since September 2013; primary dealers absorbed 9.8%, up from 2.5%. Indirect participation was below its six-month average for five consecutive Treasury note auctions.
