United States 10-year note auction: Yield at 4.421%, previous 4.342%

United States 10-year note auction: Yield at 4.421%, previous 4.342%

The U.S. Treasury Department recently sold $39 billion worth of 10-year notes, with the yield on the notes settling at 4.421%, a slight decrease from the previous auction's yield of 4.342% [1]. The auction, held on June 12, 2025, saw strong demand from buyers, with the bid-to-cover ratio at 2.52, indicating robust interest [3].

Despite concerns about declining demand for U.S. assets, the auction results suggest that investors remain confident in the nation's debt. The Treasury sold all the notes on offer, even at a lower yield, which typically indicates strong demand. Direct bidders, who are domestic buyers, accounted for 20.5% of the supply, slightly above the average of 14.5% [1]. International bidders, while slightly below the average, still accounted for 70.6% of the supply, indicating strong foreign interest [1].

The auction results were well-received, with prices of 10-year notes rising and yields falling to 4.411%, their lowest point for the session. This suggests that investors are bullish on the U.S. economy and expect the Federal Reserve to continue its policy of raising interest rates to combat inflation [1].

The Treasury is due to announce the results of the 30-year bond auction later this week, which is expected to be a bigger test of demand for long-dated government debt securities. Analysts are closely watching this auction, as it could provide further insight into investor sentiment towards U.S. government debt [6].

References:
[1] https://www.reddit.com/r/stocks/comments/1l8zvns/10year_treasury_auction_was_strong_again_in/
[3] https://www.nasdaq.com/articles/ten-year-note-auction-attracts-slightly-below-average-demand-0
[6] https://www.tradingview.com/news/reuters.com,2025:newsml_L1N3SE0SO:0-us-treasury-sees-strong-interest-in-10-year-auction/