Stellar 10Y Auction Stops Through, With 3rd Highest Foreign Demand On Record

Following yesterday's stellar 3Y auction, moments ago - with yields surging to the highest level since mid-May - the Treasury completed the sale of $39BN in a 9 Year 10 Month reopening of 10Y cusip QQ7, in what was another spectacular auction.

The note sale, which priced just after 1pm ET, stopped at a high yield of 4.580%, up from last month's 4.538%, and stopped through the When Issued 4.586% by 0.6bps, the biggest stop through since Sept '25.

The bid to cover rose to 2.593 from 2.565, which was the highest BtC also since last September, and obviously well above the six-auction average of 2.46.

The internals were also some of the best on record: foreign buyers (i.e., indirects) were awarded 81.5% of the auction, up from 78.21% in June and the 3rd highest on record.

And with Directs sliding to 10.73%, the lowest since April 25, Dealers were left holding just 7.8%, down from 9.5% in June and the lowest since January.

Overall, this was an extremely strong auction, perhaps the best 10Y of 2026, and with yields surging today, it shows that not only retail traders, but bond investors are also willing to buy the dips.