Conditions of the sellers and buyers of government bonds
USDTreasury auctions show strong demand
| Item | 10-year bonds September 9 | 30-year bonds September 10 |
|---|---|---|
| Highest bid yield | 4.834% | 5.308% |
| Stop-through | 1.5bp | 2.7bp |
| Bid-to-cover ratio | 2.71x | 2.61x |
| Issuance size | $39 billion | $22 billion |
| Primary dealers | 4.31% | 2.21% |
| Direct bidders | 16.51% | 18.31% |
| Indirect bidders | 79.18% | 79.48% |
U.S. Treasury auctions showed very strong demand for both 10-year and 30-year instruments. While that may seem obvious now, I realized I hadn't stated where to look for the initial headlines that pop up, so today I'll cover that too, includinghow to understand the market's current price, explain who the buyers and sellers in the bond market are, and why selling is happening now.