- Prior was 4.701%
- Bid to cover 2.42 vs 2.67 prior
The 1.7 bps tail is a surprise and should help to underpin the US dollar, though it’s tough to make a move ahead of more supply. This will make the market jittery ahead of the 10-year reopening in 90 minutes.
Yields across the curve have moved up in sympathy.
If the 10-year sale is also soft, it could be an indication that real money doesn’t believe that rates will be cut so quickly.