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Record 10Y Auction Prices At 9 Month High Yield Amid Sharp Drop In Foreign Demand
While stocks long ago surpassed their pre-covid February 2020 record highs, Treasury yields stubbornly refused to follow risk assets higher amid widespread concerns that a lingering covid pandemic would lead to more economic weakness in the future (read deflation). All of that changed today, when the 10Y refunding auction just priced at the highest yield since before the covid pandemic. Today's sale of $41 billion in 10Y paper, which incidentally was another record-sized auction, and double the average auction size in the period 2010-2018... chart ... priced at a high yield of 0.96%, which while stopping through the ... (full story)