An auction of 10-year Treasury notes generated strong demand Wednesday, with foreign buyers taking home a larger-than-normal portion of the notes. Indirect bidders, a group that includes foreign central banks, took home 59.5% of the notes, compared with an average of 48%. The auction's bid-to-cover ratio, a measure of how much a bidder bid for compared with how much it received, was 2.62 vs. an average of 2.63 from the last four auctions. The yield on the newly auctioned 10-year notes was 2%, 1 basis point lower than the 10-year's yield in the minute before the auction. The notes saw strong demand after the auction, with the 10-year yield down 0.8 basis point on the day to 1.983%.
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