Stellar 10-Year Treasury Note Auction

The prior yield on the on-the-run 10-year note was almost 1.73% as of noon today and the Treasury auction went off at only 1.70%. The $21 billion Treasury auction also had a substantial bid to cover ratio of 3.26 today. That is $3.26 in bids for every $1.00 offered. This strong bid to cover was well above the 3.11 average from the most recently tracked 10-year auctions.

If CNBC is any judge, the bond auction was confirmed as stellar because the financial news network’s vocal Rick Santelli gave it an “A++” rating as far as a school grade is concerned. It is also worth noting that some 22.9% of the bids were direct and that is above the average as well.

Since September 28 we have seen a low of 1.60% and a high of 1.75% on the 10-year note prior to today’s change.

JON C. OGG