The 10 yr note auction was absolutely awful. The yield of 4.14% was about 4 bps above the when issued when maybe 1-2 bps would be considered soft. The bid to cover of 2.23 was well below the one year average of 2.45 and the lowest since August 2019. Also, dealers were left with 24.4% of the auction, the most since March 2021.
Wow, that was not pretty and the 10 yr yield is back to the early morning high of 4.16%. Maybe this is just some reticence ahead of the CPI print tomorrow. Or due to a variety of other concerns that have been expressed many times here like QT and less buying from banks and foreigners at the same time huge Treasury supply is coming and the budget deficit as a % of GDP is about to inflect higher again as tax receipts falter in response to the slowing economy.
Intraday 10 yr Yield move post auction