US 10-Year Yield Steady

The yield on the US 10-year Treasury note held steady at 4.47% on Tuesday, extending Monday’s retreat as investors assessed the first of this week’s key Treasury auctions.

The $58 billion sale of 3-year notes cleared at a high yield of 3.972%, just above the when-issued level, implying a modest tail and signaling steady, if subdued, demand.

The bid-to-cover ratio of 2.52 was below recent averages, while indirect bids, at roughly 67%, remained firm suggesting continued foreign support for shorter-term US debt despite rising geopolitical and fiscal concerns.

Still, with inflation data and longer-duration auctions approaching, the curve remains sensitive to supply pressures and questions over fiscal credibility, especially ahead of Thursday’s 30-year bond sale, seen as a gauge of investor appetite for US debt.

Although solid demand has prevented a spike in yields, lingering concerns over inflation, trade tensions, and elevated issuance continue to support a higher-for-longer rate outlook.