The US Treasury sold $39 billion in 10-year notes in a record-breaking auction. The bid-to-cover ratio reached 2.71, the highest level since April 2016, while the yield settled at 4.834%, a level not seen since August 2007. Indirect investors, primarily foreign central banks and international institutions, absorbed 79.2% of the offering, compared to just 4.3% for primary dealers. This auction confirms sustained global appetite for US debt. With a risk-free return near 4.8% on a 10-year horizon, US bonds are becoming a credible competitor to equities for investors.
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