The notes were awarded at 4.093%, compared with a yield of about 4.105% moments before the bidding deadline. — Reuters
NEW YORK: The US government sold a record US$42bil of 10-year notes Wednesday at a lower-than-anticipated yield, soothing investor nerves after a recent rout and indicating confidence that the US Federal Reserve (Fed) will eventually cut interest rates.
The notes were awarded at 4.093%, compared with a yield of about 4.105% moments before 1pm New York time, the bidding deadline. The lower yield indicates stronger demand than traders anticipated. The auction result also broke a streak of tails – or a weaker result for the previous four monthly sales. US Treasuries as a whole held steady as the details were absorbed.
