Treasury's $24 B 10-year reopening was well received
Treasury's $24 B 10-year reopening was well received, as projected. The auction stopped at 2.130%. Though it tailed fractionally from the 2.129% at the bid deadline, it's nevertheless 35 bps rich to the May award rate, and is the lowest since November 2016. There were nearly $59.7 B in bids for a 2.49 cover ratio, much better than the 2.17 from the $27 B May refunding (which was the worst since March 2009), and is in line with the 2.48 average. Indirect bidders accepted a solid 65.6%, better than the prior 53.3% and the 62.9% average. Direct bidders accepted 13.6%, also a little better than May's 11.9% and the 11.2% average. Primary dealers took 20.8%, below May's 35.2% and the 25.9% average. It is the second lowest since March 2017.