FX.co ★ US 10-Year Yield Steady

The yield on the US 10-year Treasury note remained stable at 4.47% on Tuesday, following a decline the day before as investors examined the first of the week's significant Treasury auctions. The auction of $58 billion in 3-year notes concluded with a high yield of 3.972%, slightly surpassing the expected level, which indicates a modest excess in supply. Despite this, demand remained steady, though slightly subdued. The bid-to-cover ratio stood at 2.52, which is below recent averages. However, indirect bids were strong at around 67%, highlighting sustained foreign interest in shorter-term US securities even amidst rising geopolitical and fiscal concerns. As the market anticipates upcoming inflation data and longer-term treasury auctions, supply pressures and doubts regarding fiscal stability continue to impact the yield curve, particularly in anticipation of Thursday's 30-year bond auction, regarded as a measure of investor demand for US debt. While robust demand has so far prevented sharp increases in yields, ongoing concerns about inflation, trade tensions, and high levels of Treasury issuance continue to underpin a view that interest rates may remain elevated for an extended period.