U.S. Treasury sells $42B in 10-year notes

Auction Overview - The US Treasury auctioned 42 billion USD in 10-year notes [2] - The auction represents the second leg of a 125 billion USD refunding [1] - Tomorrow will be 25 billion USD 30-year bonds [5] - This will complete 125 billion USD in auction supply [5] Yield and Pricing - The yield for the 10-year notes was 4074% [2] - The yield was approximately 0005% higher than the when-issued market trading price of 4068% [2] - A higher yield at auction's end typically indicates a slightly lower price [2] Auction Demand Assessment - The auction demand received a grade of "C" [3] - The bid-to-cover ratio was below average [3] - Dealer takedown was slightly above average at 105% compared to the 11% 10-auction average [3] Market Context - The market is paying close attention to debt due to yields moving down [1] - Current yield levels haven't been seen in about two weeks [1] - The market lacks main driving fundamentals or significant data releases [4]