The long bond auction did not go fantastically well. It had a 3 bp “tail”, the difference between the yield in the market at the time of the auction and the actual auction result.
The US sold $13 bln at a yield of 3.82%.
Not a huge deal as there was better-than-average demand for the bond as the bid to cover ratio came in at 2.73, better than the 10-auction average of 2.65.
US auctions get graded on a much tougher curve than the rest of the world, that’s for sure…
US 10-year notes are well above the downtrend pointed out earlier, now at 2.735%.
Higher rates should support USD/JPY and help calm investor jitters that the US is headed for Recession II, The Sequel.