10-year Treasury yield hits 5.317% as $39 billion auction clears weak
The nine-year-ten-month note auction clears at a high yield of 5.300% with an allotment of 57.60%
Published
Chart: US10Y, US 10-year Treasury yield, one-minute prices, three sessions
The 10-year Treasury yield reaches 5.317% on Wednesday, just ahead of a $39 billion auction of the note. The sale clears at a high yield of 5.300%, with an allotment of 57.60% going to indirect bidders.
The yield touched 5.3496% in the prior session, the highest level since 2002. The climb began in mid-September, when weak uptake at Treasury's buyback operations and soft auction results first pushed the 10-year above 5%.
Today's 57.60% allotment sits at the weak end of recent demand, consistent with the pattern of soft auctions and shortfall-prone buybacks that has marked the climb since mid-September. The 10-year has now run from below 5% to above 5.3% in under a month, with no relief from Treasury's debt-management operations and no sign in this auction that investors will absorb long duration at lower yields. With deficit concerns still cited as the driver rather than a one-off shock, the higher discount rate implied by this level continues to raise borrowing costs on mortgages and corporate debt alongside the government's own financing.