"Taper talk" has injected volatility into financial markets, but it's had just a marginal impact on the Treasury's auctions this week, as traders now await the auction of $13 billion in reopened 30-year bonds Thursday.
Wednesday's 10-year auction was the second of the week, following a weak three-year note auction Tuesday. But traders say it was better than they expected.
The yield was 2.21 percent, just about at market and above its Tuesday close of 2.18 percent. Demand for the $21 billion in reopened 10-year notes saw the ratio of bids offered over those accepted at 2.53, below the 2.83 10-auction average.
Yields have been rising since the market started to price in a Federal Reserve slowdown in bond purchases, and this week's auctions were of special interest because of it. The views of when the Fed starts to taper its $85 billion in bond purchases range from September to well into next year.