U.S. Government Treasury Auction

The U.S. government sold $38 billion of 10-year Treasuries on Tuesday at a marginally higher-than-expected yield due to a dip in demand.

The notes were awarded at 4.680%, which is 2 basis points below the expected yield of 4.678%, but significantly above the 4.235% high from the previous auction.

The bid to cover ratio, which measures demand, decreased to 2.53 from 2.70 in the prior auction.

Domestic demand was strong, with direct bidders accounting for 23% of the auction, above the 17% average.

The yield on the 10-Year Treasury fell to 4.278% after trading around 4.286% just before the auction results were announced.