Treasury's $24 B 10-year reopening was solid and much better than feared
Treasury's $24 B 10-year reopening was solid and much better than feared. The offering priced very well, stopping at 2.728%, through the 2.736% at the bid deadline as the yield richened into the deadline. That compares to the 2.915% from December, and the 3.209% from the November refunding (giving it a 3.125% coupon). It's the lowest since last January. There were $60.2 B in bids for a 2.51 cover, better than last month's 2.35 (which was the lowest since February) but right on the 2.51 average. Indirect bidders were awarded 56.9%, below both the 63.1% previously and the 64.1% average. Direct bidders accepted a very strong 20.8%, double last week's 10.8%, and the strongest since May 2015. Primary dealers took 22.3%, below the prior 26.1%.